'One Year Since Employee Death in Heatwave'... Costco, Labor-Management Conflict 'Escalates'

Costco Union Memorial Rally at Hanam Branch on 19th
Collective Bargaining Remains at a Standstill After 26 Sessions

As the first anniversary of the death of a Costco Hanam branch employee who died while managing carts during last year's heatwave approaches, the conflict between labor and management is deepening. Following the fatal accident at the Hanam branch, Costco labor and management have engaged in dozens of negotiations to establish a collective bargaining agreement, but they have failed to narrow their differences. The union pressured the company with two general strikes this year and organized a large-scale memorial event to coincide with the first anniversary of the Hanam branch worker's death.

According to industry sources on the 13th, the Costco branch of the Mart Industry Union will hold a rally and press conference in front of the Hanam branch on the 19th to mark the first anniversary of the late Kim Dong-ho's death. Along with the rally, the union plans to conduct activities such as wearing black clothing and attaching stickers at 18 branches nationwide as a tribute. Lee Hyun-hyeon, head of the Costco union branch, said, "It has been almost a year since Kim Dong-ho passed away, but nothing has changed in terms of workplace safety," adding, "Thorough labor supervision of Costco is necessary."

The first anniversary of the late Kim Dong-ho's death...

[Image source=Yonhap News]

The late Kim Dong-ho, who worked at Costco Hanam branch, collapsed while organizing carts in the store parking lot on June 19 last year and was transported to a nearby hospital emergency room, where he later died. At the time, Hanam City issued a heatwave warning as the perceived temperature exceeded 35°C for two consecutive days. The hospital stated that Kim's final cause of death was "pulmonary embolism and excessive dehydration due to heat." It is known that Kim walked up to 43,000 steps a day, covering a distance of 26 km, while managing carts.

Kim's bereaved family and the union urged the company to conduct a thorough investigation into the death and implement measures to prevent recurrence, but Costco Korea responded lukewarmly, sparking public outrage. The family was recognized for industrial accident compensation by the Korea Workers' Compensation and Welfare Service in October of the same year.

This fatal accident prompted the resumption of collective bargaining between Costco labor and management. The union was established in August 2020, and collective bargaining began in February of the following year but repeatedly broke down. Negotiations were suspended for over two years from September 2021.

Labor-management conflict over union membership eligibility, time off, and occupational safety and health

The collective bargaining resumed last year is still at an impasse. Labor and management are at odds over issues such as union membership eligibility, paid time off for union activities (time off), and occupational safety and health in the collective agreement.

Regarding union membership eligibility, the union considers all employees except store managers and assistant managers eligible for union membership, while management insists that only regular employees are eligible.

The scope of time off is also controversial. The time off system is designed to guarantee that union members do not suffer wage loss when engaging in negotiations and consultations with the employer during working hours, with the applicable persons and time limits set through collective agreements. The union argues that since there are over 500 members, 5,000 to 6,000 hours should be guaranteed. According to the Ministry of Employment and Labor's notice, unions with 300-499 members are entitled to up to 5,000 hours, and those with 500-999 members up to 6,000 hours of time off. On the other hand, the company initially proposed only 80 hours annually for 10 executives but recently increased it to 2,000 hours.

Regarding occupational safety and health issues, management has not proposed any specific measures. The union insists on providing rest chairs in break rooms, backrest chairs at cash registers, and protective measures for parking lot workers, but management considers it unreasonable to codify these in the collective agreement.

As collective bargaining remains deadlocked, the union conducted two general strikes in February and April this year and held a press conference delivering protest letters to the U.S. Embassy in April.

In March this year, the Gyeonggi Regional Labor Commission recognized the company's failure to negotiate as an unfair labor practice. The commission also judged that the union's demands do not appear excessive or unreasonable, nor do they violate the Labor Standards Act or the Trade Union Act. However, despite the strikes and the commission's ruling, Costco labor and management have shown little progress.

So far, labor and management have held 26 rounds of negotiations, with the 27th scheduled for the 14th. Lee Hyun-hyeon said, "It has been several years since Costco labor and management began negotiations, but a collective agreement has still not been reached. This is a unique case in similar industries," adding, "The collective agreement includes fundamental issues such as safety, so it must be concluded."

Costco-related image. Photo by Yongjun Cho jun21@