Will Seoul Bus Labor Talks Make Progress?... Donga Transportation Appeal Verdict

Donga Transportation Regular Wage Appeal Ruling on the 29th
Attention on Whether Supreme Court Decision Will Overturn Previous Ruling
Bus Union: "Rapid Progress Expected in Collective Bargaining"
Possibility of Bus Strike if Differences Remain

Attention is focused on whether the wage collective bargaining agreement between labor and management of Seoul city buses, which has been at an impasse for six months, will find a breakthrough on October 29, following the appellate court ruling on the regular wage case involving Donga Transportation. If differences persist even after the ruling, there is a possibility that the bus union may go on strike in mid-November.

According to the Seoul City Bus Labor Union and others, the appellate court will deliver its verdict at 2 p.m. on this day regarding the second trial of the regular wage lawsuit filed by Donga Transportation workers. In 2015, bus workers from Donga Transportation filed a lawsuit demanding that bonuses be included in their regular wages, but the court of first instance ruled in favor of management. However, the situation changed after the Supreme Court’s full bench ruled in December last year that regular bonuses must be included in regular wages.

As negotiations between labor and management of Seoul city buses broke down, the union began a lawful operation strike. On April 30, 2025, buses were stopped at the Seoul Station Bus Transfer Center in Jung-gu, Seoul. Photo by Kang Jinhyung

The union believes that if the appellate court recognizes the inclusion of bonuses in regular wages in this second trial, negotiations between labor and management will gain momentum. A union representative stated, "If, in a situation where the Seoul Metropolitan Government is not complying with the Supreme Court ruling, the Ministry of Employment and Labor’s petition and the court ruling both confirm this, it will lead to rapid progress in the collective bargaining talks."

Previously, the union, the Seoul City Bus Transportation Business Association (representing management), and the Seoul Metropolitan Government clashed over the issue of regular wages, causing this year’s collective bargaining negotiations to break down. The business association and the city government argue that, given the expanded scope of regular wages and the resulting sharp increase in labor costs, the wage system should be restructured by including bonuses in the base salary. In contrast, the union insists that, according to the Supreme Court ruling, bonuses must be included in regular wages and paid as a matter of course, and therefore the issue of regular wages is not subject to negotiation. The union also points out that if bonuses are counted as regular wages under the current wage system, wages will rise, but if the wage system is restructured, this increase will disappear, which they see as a "de facto wage cut."

The union may go on strike if negotiations remain stalled even after the court ruling. Following the breakdown of mediation by the Seoul Regional Labor Relations Commission in April, the union, which represents 61 city bus companies, has already secured the right to strike. In addition, four "converted companies"-operators whose village bus licenses have been changed to city bus licenses-may also join. Typically, these converted companies would follow the main city bus labor-management agreement once it is concluded, but as negotiations have been delayed, they filed a separate mediation request on October 27. If the mediation period expires at midnight on November 11, they too will secure the right to strike. A union representative said, "If the appellate court ruling is overturned and the Seoul Metropolitan Government maintains its position, we will have no choice but to go on strike again. However, since the 13th is the day of the college entrance exam, we are considering various options, such as suspending the strike on that day."

Labor and management plan to hold the 13th main round of negotiations early next week after reviewing the court’s decision.