Government Aiming to Tackle 'Employment Succession' Faces Concerns of Empty Promises Before Taking First Step

Ministry of Employment to Rectify Unfair Collective Agreements
"Priority Hiring of Long-Term Employees' Children with Non-Work Injuries Illegal"
Union Opposition and Company Passive Response... Agreement Unlikely

Kia Gwangmyeong Plant Overview

[Asia Economy Reporter Choi Dae-yeol] The government has decided to issue a corrective order regarding collective agreements at some workplaces that prioritize hiring the children of union members who have worked for a long time. The rationale given is to ensure fair hiring opportunities. However, the industry views the effectiveness of this measure negatively, as unions are expected to resist and companies are likely to respond passively.

According to the industry on the 23rd, the government decided in August to correct unfair collective agreements and is currently taking corrective action procedures targeting about 60 workplaces nationwide. This action follows the judgment that collective agreements prioritizing the hiring of direct family members of retirees, long-term employees, or employees with non-work-related illnesses, or hiring those recommended by unions or employees, are illegal.

The so-called "employment inheritance" controversy has surfaced in various forms both inside and outside companies and courts, but was settled when the Supreme Court ruled it valid in 2020. However, at that time, the Supreme Court limited the validity of such collective agreement clauses to industrial accidents, i.e., injuries or illnesses related to work. Around the time of the Supreme Court ruling, some workplaces such as Hyundai Motor Company removed these clauses through labor-management agreements. The government is now targeting the part that prioritizes hiring children of long-term employees or employees unable to work due to illnesses unrelated to work.

The problem is that the government's "verbal authority" is unlikely to be effective. The Kia union, which is the subject of this measure, strongly opposed it, calling it "union busting." Each regional labor office of the Ministry of Employment and Labor requested opinions from the workplaces involved by mid-month regarding this issue, but the Kia union reportedly did not submit any separate opinion. The company is also only conducting legal reviews related to this matter and has not clearly established its position. To amend the collective agreement, labor and management must come together to agree, but it is difficult even to put this issue on the agenda.

It is also a burden for the government that the Supreme Court previously stated that the collective agreement did not violate the Constitution or related laws when it ruled it valid. There is also little consequence for not complying with the corrective order. Even if the labor committee's corrective order on the collective agreement is not followed, the penalty is only a fine of up to 5 million won.

Ultimately, many expect this issue to end without significant results, merely emphasizing fair hiring on the surface. Although President Yoon Suk-yeol emphasized fairness as a major campaign pledge during his candidacy and before and after his inauguration, evaluations suggest that there has been little improvement compared to the past in appointing key public officials or managing state affairs. This inevitably lowers trust in government policies. Since the clause was effectively obsolete and not functioning at the frontline, even if the collective agreement is amended through labor-management agreement, it is pointed out that the actual impact felt in the hiring market will not be significant.