LABOR LAW GUIDE

Chapter 14 Collective Bargaining and Collective Agreement

Section 2: Multiple Labor Unions(1/3). Ⅰ. Understanding the Multiple Union System. Ⅱ. Determining the Representative Union Channel for Bargaining.

Ⅰ. Understanding the Multiple Union System

1. Concept

Effective July 1, 2011, employees are free to organize two or more labor unions in the unit of a business(or workplace) or to join such labor union(s), according to revision of the Trade Union and Labor Relations Adjustment Act(hereinafter referred to as ‘the Trade Union Act’). However, this revised law stipulates the application of one unified collective agreement in a business(or workplace) by introducing a single bargaining channel. This is designed to prevent disturbances from duplicate bargaining, different applications of working conditions, and serious disputes between unions.
Generally in the Multiple Union System, only the largest labor union representing more than half of a company’s union members will engage in collective bargaining and collective contracting as the bargaining representative union, and has the duty to represent the minority labor unions fairly. Since this Multiple Union System was implemented on July 1, 2011, many changes have occurred in labor relations between employers and the labor unions, both positive and negative. The positive changes include guaranteeing the right to multiple labor unions in one company where employees are free to join the one they like, and even establish their own. The negative changes include weakening of industrial unions as they are now splintered and must choose a bargaining representative union to represent all of them in each workplace or business unit. Some companies have taken advantage of this change by subsidizing or otherwise supporting company-friendly labor unions to the point where they obtain the majority of union membership. In such situations, the existing combative and unfriendly labor unions find themselves generally powerless as they become minority labor unions that have lost their right to bargain and take action collectively.

2. Determining the representative bargaining union and bargaining methods

(1) Principle

In cases where a company-level labor union was determined and confirmed as the representative bargaining union through the procedures mentioned above, it can conclude a collective agreement by negotiating with the employer. A branch or unit of an umbrella labor union(such as an industrial union) at the business or workplace shall also participate in determining and confirming the representative bargaining union through the procedures mentioned above. Accordingly, if the branch or unit of the umbrella union or the company-level labor union did not participate in determining and confirming the representative bargaining union, it cannot negotiate with the employer. In such a case, if the employer rejects a request for negotiation with the umbrella union, it will not be considered unfair labor practice.

(2) Determining the representative bargaining union case-by-case

1) In cases where there are two company-level labor unions


Above all, labor union A and labor union B shall autonomously determine the representative bargaining union. If they fail to do so, labor union A becomes the representative bargaining union as it has the majority of union members.


2) In cases where there are labor unions at the company, local, and industry level


Above all, company-level labor union A, local-level labor union B and Industrial Union C shall autonomously determine the representative bargaining union. If the labor unions fail to do so, labor union A becomes the representative bargaining union as it has the majority of the total 750 union members.


3) In cases where there are two industrial unions and one company labor union


Above all, the three labor unions shall autonomously determine the representative bargaining union. If they fail to do so, none of the labor unions represent a majority of the 1,050 members, but if a particular labor union comes to represent a majority of the members by coalition or commission, that joint union becomes the representative bargaining union as it will now represent a majority of the membership.

(3) Exception in the representative bargaining union system: division of bargaining unit
The bargaining unit shall be a business or workplace, but if it is deemed necessary to divide the bargaining unit given the considerable disparity in working conditions, employment status, bargaining practices, etc., in a business or workplace, the Labor Commission may decide to divide the bargaining unit at the request of either or both of the parties to the labor relationship.

Ⅱ. Determining the Representative Union Channel for Bargaining

1. Summary

In order to start bargaining procedures with the employer in a business or workplace, all labor unions shall participate in the procedures for determining the bargaining channel and determine the representative bargaining union. The regulation to establish a bargaining channel is mandatory for both the labor union and the company. Regardless of type of organization or if they duplicate each other, all labor unions which employees of a business or workplace have joined or organized shall participate in the procedures to determine the representative union to be the bargaining channel. Determining the bargaining channel is ① to confirm which labor unions are participating in the bargaining channel and ② to determine a single representative bargaining union.

2. Procedures confirming participating labor unions

(1) Demand for bargaining (by the labor union)
A labor union may begin to request bargaining with the employer three months before the expiration date of the collective agreement. In this case, the request shall be made in writing, including the name of the labor union and the number of union members as of the date of the request for bargaining.

(2) Public notice of the labor union’s request for bargaining (by the employer)
Upon receiving a request to bargain from a labor union, an employer shall put a notice on a bulletin board in the business or workplace concerned for seven days from the date of receiving said request. Even should there be only one labor union in that business or workplace, the employer shall post notice of the labor union’s request for bargaining as there may be employees who have joined other industrial or local labor unions.

(3) Application by another labor union for bargaining (by the labor union)
If another labor union wants to participate in the collective bargaining, it shall request to do so within the seven-day notice period. Unions that fail to do this will be unable to participate in the procedures to determine a bargaining channel.

(4) Confirmation of labor union request for bargaining (by the employer)
The employer shall give public notice of the submitted request for five days beyond the seven-day notice period. Only labor unions that were confirmed as labor unions requesting bargaining can participate in the procedures to determine the representative bargaining union and apply for redress of any violation of the right for fair representation.

3. Procedures for determining the representative bargaining union

(1) Summary
If there is only one labor union confirmed and determined as a labor union requesting bargaining, that labor union shall be the representative bargaining union. If two or more labor unions are confirmed and determined as labor unions requesting bargaining, the labor unions shall determine one representative bargaining union regardless of the type of organization or duplication in organizational coverage and negotiate with the employer. An exception is possible if separate bargaining with the other labor union(s) is accepted by the employer.

(2) Autonomous determination (by the labor union)
The labor unions, after confirmed or determined as labor unions requesting bargaining, can autonomously determine the representative bargaining union within 14 days after such confirmation. As there are no special procedures on or limits to the method used to determine the representative union, the only requirement is that the labor unions collectively agree.

(3) Confirmation of a majority labor union (by the labor union)
A majority labor union is a labor union organized with a majority of the members of all labor unions participating in the procedures for determining the representative bargaining union. If there is no majority labor union, in cases where two or more labor unions share the majority of the members of all labor unions participating in the procedures to establish a single bargaining channel by delegating authority or being united, they will be regarded as the majority labor union. Once the representative bargaining union is determined, the employer shall be notified within five days after expiration of the period for autonomous determination.

(4) Notification of information (by the employer)
Upon receiving notification that a labor union is the majority labor union, the employer shall give public notice of this for five days from the date of receiving that notification to ensure that other labor unions and employees see it.

(5) Joint bargaining representative team (by autonomous or Labor Commission decision)
If there is no majority labor union, the labor unions eligible to jointly participate as the representative bargaining union shall organize a joint bargaining representative team and begin negotiations with the employer. The joint bargaining representative team shall be organized autonomously by the labor unions but if there is no agreement, it will be composed by the Labor Commission. The labor unions eligible to participate in the joint bargaining representative team shall be those whose members make up not less than 10% of the members of all labor unions participating in the procedures to determine the representative bargaining union. The collective agreement that the joint bargaining representative team concludes with the employer shall still apply to members of labor unions who make up less than 10% of the membership of all unions at the business or workplace, and these members shall still be eligible to vote for or against collective action.

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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