President Jominsoo's First Related Move After Conflict
No Conclusion by 23rd Negotiation... Ministry of Labor Mediation
The Costco labor union, which has been in conflict with management over the signing of a collective agreement, will enter its second strike on the 27th. With the Ministry of Employment and Labor stepping in to mediate, interest is growing as Costco CEO Jominsoo takes related actions for the first time since the labor-management conflict, raising hopes that both sides might reach a smooth agreement before the strike.
According to the Costco union on the 1st, the union will begin its second strike on the 27th of this month. The union previously held a first strike for two days on February 3rd and 4th. Lee Hyunhyeon, head of the Costco union branch, stated, "Currently, talks with management are repeatedly going nowhere," adding, "Since the 28th is a mandatory holiday, we are planning to strike for only one day on the 27th this time."
The union had scheduled the second strike for the 23rd of last month but postponed it. This was because the unfair labor practice relief hearing filed by the union with the Gyeonggi Regional Labor Relations Commission, claiming that management was neglecting dialogue with the union, was held on the 14th of last month. The regional labor commission ruled in favor of the union regarding the unfair labor practices.
Although the regional labor commission sided with the union, labor-management talks have been difficult. After the hearing, both sides held the 23rd negotiation session on the 26th of last month but only confirmed each other's positions without reaching any significant conclusions. The 24th negotiation session is scheduled for the 15th of this month. Detailed results of the regional labor commission's ruling are usually delivered to both sides about a month after the hearing. Therefore, there is a possibility that more advanced proposals will emerge during the negotiations on the 15th.
As labor and management continue to be at an impasse, the Ministry of Employment and Labor has stepped in to mediate. On this day, CEO Jominsoo and the union each met with Lee Huesong, head of the Anyang Employment and Labor Office, and Min Gilsu, head of the Central Regional Employment and Labor Office, respectively, for discussions. A ministry official stated, "The conflict between Costco labor and management has been prolonged, so this meeting was held to facilitate smooth negotiations." This is the first official action taken by CEO Jominsoo regarding the labor-management conflict.
Costco labor and management have been in conflict over the signing of a collective agreement for more than three years. The Costco union was established in August 2020 and began negotiations with the company for a collective bargaining agreement in the same year. However, during 12 main negotiation sessions over more than a year until September of the following year, no significant conclusions were reached. Dialogue was then suspended for two years due to COVID-19, but resumed in September last year after a worker in their 20s died at the Costco Hanam branch in June. Since then, eight main negotiation sessions have been held, but positions remain far apart.
Meanwhile, the Costco union applied for dispute mediation at the Central Labor Relations Commission in October 2021, and after the commission decided to suspend mediation, the union obtained the right to strike.
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