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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Hyundai Steel announced on the 19th that it is assessing the situation following the Ministry of Employment and Labor’s directive to directly employ approximately 1,000 subcontracted workers.
The company is closely monitoring the matter, particularly given that related court proceedings are still ongoing, raising concerns over whether the administrative order could influence future judicial decisions.
According to a press release by the Ministry, the Cheonan branch instructed Hyundai Steel to directly employ 1,213 workers from 10 subcontractors at its Dangjin plant. The directive includes a compliance period of 25 days, with fines of up to 30 million KRW per worker if not implemented. The fines are tiered: 10 million KRW for a first violation, 20 million KRW for a second, and 30 million KRW for a third.
Currently, Hyundai Steel awaits a Supreme Court ruling in a case regarding allegations of illegal dispatch of subcontract workers at the Dangjin Steelworks. The workers subject to the labor ministry’s direct employment order do not entirely overlap with those involved in the court case, although there is some overlap.
In the related lawsuit, the first-instance court in December 2022 recognized all 923 subcontract workers as effectively full-time employees. However, the appellate court in November last year ruled that illegal dispatch did not apply to 324 of the 890 workers under dispute. The appellate court held that subcontract workers engaged in heavy equipment operation and maintenance could not be considered under Hyundai Steel’s direct supervision and control. Both the company and labor union appealed to the Supreme Court.
Within Hyundai Steel, there is a sense of surprise that the Ministry of Employment and Labor issued a direct employment order while judicial proceedings are still underway.
The Cheonan branch explained that it formed a dedicated task force to investigate Hyundai Steel’s alleged illegal dispatch case, which led to a recommendation for prosecution to the prosecution in June 2024. After additional investigation, the prosecution filed charges with the court in December last year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
