Won Hee-ryong, Minister of Land, Infrastructure and Transport: "Fake Union Full-time Officials Will Be Expelled"

Analysis Results of Ministry of Land Damage Cases Survey
Unfair Union Full-time Fees Average 1.4 Million KRW per Month
Additionally, 200,000 KRW Monthly Welfare Fund Practice

On the 15th, Won Hee-ryong, Minister of Land, Infrastructure and Transport, warned, "We will expel fake union full-time workers from the field." This is to correct the frequent cases where construction companies deposit money to union full-time workers without knowing their faces, while they do not engage in any activities to improve the treatment of union members on site.

[Image source=Yonhap News]

On the 15th, Minister Won Hee-ryong revealed the results of an analysis on cases of improper receipt of money such as "union full-time fees," emphasizing, "There is no reason for companies to bear wages for union members who neither provide labor on site nor engage in activities to improve the treatment of union members on site," and added, "Following fake workers such as team leaders who do not work, we will also expel 'fake union full-time workers' from the field."

Minister Won further stated, "From now on, together with related ministries, we will thoroughly investigate whether union full-time workers at construction sites are designated and operated in accordance with the original intent of the paid labor hour exemption system stipulated in the Labor Union Act."

The union full-time fee refers to the paid labor hour exemption system under the Labor Union Act, which means that workers are paid salaries without providing labor during the time they perform union-related tasks such as negotiation and consultation with employers to improve the treatment of union-affiliated workers. This paid labor hour exemption must be stipulated in collective agreements or have the employer's consent.

However, despite annual exemption limits based on the number of union members at each workplace, construction-related unions have not disclosed the number of members or activity details, leading to a problematic practice of payments being made as designated by the union.

In fact, cases were uncovered where 10 unions received full-time fees from one company at a single site, with employers unable to access union-related information or the activities of full-time workers. According to the industry, the so-called union full-time fee structure begins when a site is opened and the local union forces the deployment of affiliated work teams, conducting site negotiations. In this process, the union full-time fee for full-time workers is effectively coerced, and this has become an established practice.

Full-time workers are designated by the union, and when the account number and amount are notified, construction companies often deposit money without even knowing the faces of these full-time workers. Construction companies enter into labor contracts with these full-time workers and process paperwork such as the four major insurances as if they are working on site. In addition to union full-time fees, there was also a practice where unions typically demanded and collected a certain amount (about 200,000 KRW per month) from companies as welfare funds.

Investigation results showed that the person who received the most full-time fees accumulated 164 million KRW (across 20 sites). The average monthly amount received by union full-time workers was 1.4 million KRW, with some cases receiving up to 17 million KRW per month.

There were also cases where one person received full-time fees from multiple sites during the same period. On average, they received fees from 2.5 sites simultaneously, and Mr. A received fees from up to 10 sites during the same period. The total amount received from multiple sites was about 2.6 million KRW per month, with some cases receiving up to 8.1 million KRW per month. The average period of receiving money from multiple sites was 6.6 months, with some cases lasting up to 21 months.