Costco Labor-Management 'Strong Stand-off'... "2nd General Strike on 27th"

Gyeonggi Labor Commission's 'Unfair Labor Practice Recognition' Reconsideration Request
Union Plans 2nd Strike on 27th and CEO National Assembly Hearing Witness 추진

The Costco labor and management, who have been engaged in a tug-of-war for over three years over the signing of a collective agreement, continue their strong confrontation. The management recently filed an appeal against the Gyeonggi Regional Labor Relations Commission's recognition of unfair labor practices, and the union declared a second strike on the 27th of this month.

According to the distribution industry on the 23rd, the Mart Industry Labor Union of the Korean Confederation of Trade Unions Service Federation held a press conference in front of Costco Yangpyeong branch the day before and announced that they would launch a second general strike to urge Costco CEO Jominsoo to apologize and conclude collective bargaining.

This general strike follows the breakdown of the 24th negotiation between Costco labor and management held on the 15th. The negotiation took place shortly after the union filed an unfair labor practice relief application with the Gyeonggi Regional Labor Relations Commission on the 14th of last month, but both sides only confirmed their differences and parted ways. Imihyun, head of the Costco union branch, said, "We expected the company to present a proposal regarding collective bargaining, but that did not happen," adding, "Despite the Gyeonggi Regional Labor Relations Commission's recognition of unfair labor practices, nothing has changed."

Earlier, the Gyeonggi Regional Labor Relations Commission recently accepted the unfair labor practice relief application filed by the Mart Union Costco branch against Costco Korea management in January and ordered Costco management to sincerely engage in negotiations with the union. It also confirmed that the union's demands on key issues between labor and management?such as the scope and extent of working hours exemption, the range of union membership, and the provision of break rooms and chairs?fall within the permissible scope of labor relations laws.

The union formed the Costco branch in August 2020 and began collective bargaining with management in February 2021 but has yet to sign a collective agreement. In April 2021, the union filed an unfair labor practice relief application with the Gyeonggi Regional Labor Relations Commission, citing management's negotiation negligence. When the Anyang branch of the Ministry of Employment and Labor urged management to negotiate sincerely, management promised to sign a basic agreement, leading the union to withdraw the unfair labor practice relief application.

Subsequently, labor and management signed a basic agreement covering negotiation cycles and paid negotiation time for negotiators. They then began 12 rounds of collective bargaining until September 2021, but negotiations broke down.

Negotiations between labor and management resumed two years later. In June last year, an incident occurred where the late Kim Dongho (31) collapsed and died while organizing carts in the parking lot of Costco Hanam branch. Negotiations resumed in September of the same year and continued until February this year. However, both sides failed to narrow their differences.

Management recently informed the union during the 24th negotiation that they had filed an appeal with the Central Labor Relations Commission against the Gyeonggi Regional Labor Relations Commission's ruling on unfair labor practices. Since an employer's refusal or negligence in collective bargaining without just cause is a violation of the Labor Union Act and subject to criminal punishment, management appears to be taking a strong stance.

The union is also considering a large-scale rally to mark the first anniversary of the Hanam branch worker's death in June. The union applied for dispute mediation to the Central Labor Relations Commission in October 2021, and after the commission decided to suspend mediation, the union obtained the right to strike.