Court: "POSCO's Exclusion of In-house Subcontracted Workers' Children from Tuition Support is Illegal"

The court has ruled that POSCO's exclusion of certain in-house subcontracted workers from receiving child education funds is unjust.

On the 17th, the 3-2 Civil Division of the Suncheon Branch of Gwangju District Court ruled that POSCO in-house subcontracted union members of the Korean Metal Workers' Union, totaling 261 members, must be paid child education funds and welfare points in a lawsuit against the POSCO Gwangyang Steelworks partner companies' Joint Labor Welfare Fund (Labor Welfare Fund). Earlier, on May 23, the 1st Civil Division of the Pohang Branch of Daegu District Court also ruled in favor of 373 in-house subcontracted workers at POSCO Pohang Steelworks who filed claims for education funds and other benefits.

The Korean Metal Workers' Union Gwangju-Jeonnam Branch POSCO In-house Subcontracted Union stated, "POSCO and the Labor Welfare Fund must immediately pay the education funds and welfare points," adding, "If POSCO refuses to comply with the payment of child education funds despite repeated illegal rulings by the courts, even at the cost of a 12% statutory interest, it admits that the exclusion of education funds is intended as union suppression."

The union argued that child education funds and welfare points are being paid to subcontracted workers who do not file lawsuits to confirm their worker status, which constitutes illegal acts violating constitutional rights to equality and access to courts, as well as the Basic Labor Welfare Act. Accordingly, they held POSCO liable for non-performance of obligations and illegal acts, and won the case in this trial.

Since July 2021, POSCO and its partner companies have established the Labor Welfare Fund to improve the quality of life and welfare of POSCO in-house subcontracted workers, providing child education funds and welfare points. The eligibility criteria for child education funds were also announced as "children of employees who have been continuously employed for more than one year."

However, following a series of illegal dispatch rulings in worker status confirmation lawsuits, from the third quarter of 2021, education funds and welfare points were not paid to workers who filed such lawsuits. The Ministry of Employment and Labor ordered corrective measures against this discrimination, and imposed fines for non-compliance. Although the Labor Welfare Fund appealed to the court, the court ruled that "the imposition of fines is justified." The National Human Rights Commission also recommended corrective measures against discrimination.

The union claimed, "POSCO's exclusion of child education funds was intended to block worker status confirmation lawsuits and union membership in the Korean Metal Workers' Union," adding, "Under the banner of mutual cooperation, it was used not to eliminate discrimination but as a tool for union destruction and suppression." They further stated, "As a result of this suppression, among more than 2,000 participants in worker status confirmation lawsuits, about 500 withdrew their lawsuits and left the Korean Metal Workers' Union."