"Illegal Strike Immunity Ruling... Responsibility Must Be Fairly Assigned According to Law and Principles"

KEF Holds Forum on Court Ruling Over Illegal Labor Disputes

Recently, the business community expressed concerns regarding a court ruling that stated Hyundai Motor Company's irregular workers' union could not be held liable for damages if the lost production volume caused by their illegal factory occupation was recovered.

On the 13th, union members belonging to the Hyundai Kia Motors Irregular Workers' Branch held a press conference in front of the Seoul Employment and Labor Office in Jung-gu, Seoul, urging the abolition of the in-house subcontracting system at Hyundai Kia Motors and the elimination of irregular workers. Photo by Kang Jin-hyung aymsdream@

On the 9th, Lee Dong-geun, Executive Vice President of the Korea Employers Federation, stated at a forum titled "Issues with Damage Compensation Rulings on Illegal Disputes" held at the Korea Press Center in Gwanghwamun, Seoul, that "the judiciary should not differentiate illegal labor disputes from other illegal acts and must hold parties fairly and strictly accountable according to law and principles."

Lee expressed doubts that "the majority of the public would accept a ruling that finds no company damages despite hundreds of cars' production disruptions caused by the union's illegal factory occupation and union members involved receiving guilty verdicts in criminal trials," adding, "If illegal labor disputes are not held responsible for production disruptions, it is tantamount to granting them a free pass."

He further pointed out, "Frequent illegal acts such as violence and destruction by militant unions, workplace occupations, and obstruction of access are plaguing many companies," emphasizing, "Instead of granting immunity for illegal acts, extreme illegal practices like workplace occupations must be addressed first."

Previously, in 2012, Hyundai Motor's irregular workers' union occupied parts of the Ulsan plant's body shop line, demanding direct employment of in-house subcontracted irregular workers. Hyundai Motor filed a lawsuit against participating union members, seeking damages for losses caused by the illegal labor dispute.

The lower courts ruled partially in favor of Hyundai Motor in the first and second trials, but in June 2023, the Supreme Court overturned and remanded the case, stating that the liability for damages of striking union members should be assessed individually. In February, the Busan High Court dismissed all of Hyundai Motor's claims in the retrial.

Professor Sung Dae-gyu of Kangwon National University Law School, who presented at the forum, also stated, "Fixed costs wasted by the employer due to illegal labor disputes are 'direct facts' in the labor relationship, not 'indirect facts,'" expressing disagreement with the court's ruling.

He added, "The law stipulates that the scope of responsibility should be individually determined according to each liable party's fault and contribution for each damage," warning, "Although 'joint illegal acts' are recognized, this will result in shifting the burden of proof regarding the fault ratio of individual union members onto the victimized employer."