E-Mart, 60 Billion Won in Holiday Work Allowance Arrears... Labor Union Announces Lawsuit

On the 16th, participants are shouting slogans at the Emart Branch lawsuit commencement press conference held in the Service Federation conference room in Seodaemun-gu, Seoul. (Photo by Yonhap News)

[Asia Economy Reporter Seungjin Lee] The Emart Branch of the Mart Industry Union under the Korean Confederation of Trade Unions (KCTU) Service Federation held a press conference at 11 a.m. on the 16th, announcing that Emart has not paid approximately 60 billion KRW in holiday work allowances to workers over the past three years and is preparing to file a lawsuit claiming unpaid wages.

The union stated, "Since the June 29 Declaration of 1987, we have elected presidents by direct vote. However, even after 30 years, Emart still elects worker representatives through a 'triple indirect election system' citing legal ambiguities," adding, "We intend to raise awareness about the problems of the worker representative system starting with Emart."

A worker representative refers to a person authorized to negotiate agreements on wages and working conditions for employees. They must be elected either as representatives of the majority labor union or, if no majority union exists, by gathering support from more than half of all workers. The union explained that instead of electing worker representatives by gathering the majority opinion of workers, Emart appointed company-wide employee representatives elected indirectly by about 150 store workplace representatives as worker representatives and withheld holiday work allowances.

The union further explained, "According to Article 56, Paragraph 2 of the Labor Standards Act, 150% of the ordinary wage must be paid for holiday work. However, the company reduced labor costs by using an unauthorized worker representative to agree on providing one substitute holiday and paying only 100% of the wage."

The union estimated that Emart has been substituting holiday work allowances with substitute holidays using this method since 2012, and that at least 60 billion KRW in allowances have not been paid over the recent three-year period during which claims for unpaid wages are possible.

The union announced, "We will recruit plaintiffs in June and file a lawsuit claiming unpaid wages in July," adding, "We will also file a complaint with the Ministry of Employment and Labor regarding the process of electing worker representatives."

In response, Emart denied the union's claims, stating that the current worker representatives were lawfully selected.

Emart stated, "The Ministry of Employment and Labor interprets that 'if there is no labor union organized by the majority, the employee members of the labor-management council can be regarded as worker representatives.' Therefore, since Emart has no majority union, the company-wide employee representatives of the labor-management council can be considered worker representatives."

Emart also stated, "Since 1999, we have been negotiating with the lawfully selected worker representatives, the company-wide employee representatives of the labor-management council, on wages and various matters related to welfare improvement."