LABOR CASES

Collective Bargaining and Collective Agreement

A Case of Recovery of Infringed Managerial Rights through Collective Bargaining


I. Major Outlines

A labor union of civilian employees employed by one local autonomous government (hereinafter referred to as “the employer”) was established ten years, and has obtained the labor union’s rights by involving into managerial rights and expanded paid union time though collective agreements. The employer could not operate manpower efficiently due to the labor union’s involvements at managerial rights in reality, and the employer has also been obstructed at work performance gradually due to the excessive paid union time. Under these circumstances, since existing collective bargaining expired in April 2008, the labor union and the employer could not renew the collective agreement due to many differences despites ten collective bargain meetings. Then, the employer commissioned me with this collective bargaining authority in March 2009, demanding that I should delete infringed articles related to managerial rights and reduce the labor union’s too much paid union time. This labor attorney has implemented 24 collective bargaining meetings very faithfully with the labor union from March 2009 to Oct 1st. Based upon sincere collective bargaining meetings, the employer recovered the infringed managerial rights from the collective agreement, and the employer also reduced the labor union’s paid union time in half. Of course, in return for their compromises, the employer paid back to the labor union with improved working conditions such as extension of retirement age, increase of health checkup subsidy, introduction of interim severance pay, etc. Finally, we concluded collective bargaining into the collective agreement, exchanging mutual gains.

II. Collective Bargaining Summary

1. The employer proposed the labor union for the employer’s draft of collective agreement. (Feb 17, 2009)
2. 1~2nd collective bargaining meetings on Mar 11(Wed), 11th and Mar 19(Wed)
- The labor union did not recognize the company’s labor attorney as the employer’s representative negotiator.
3. 3~7th collective bargaining meetings on Apr 1(Wed), Apr 15(Wed), Apr 24(Wed), and Apr 29(Wed)
– The labor union did not respond to the employer’s collective agreement draft at all, but instead requested for collective bargaining on wages first.
4. 8th collective bargaining on May 6(Wed)
- The labor union unilaterally declared the status of industrial disputes, and the labor union held a press conference and announced a strike against the employer on May 13 (Wednesday morning).
5. The employer informed the labor union of cancellation of the collective agreement on May 13, 2009 (in the afternoon): its effect will be available in 6 months on Nov 13.
6. Application to the Labor Relations Commission for adjustment of industrial disputes and both sides rejected mediators’ draft. (10 days from May 20 to May 29)
7. After a bargain broke down, the labor union held more than 50 demonstrations in front of city hall from May to October.
8. The labor union requested for a meeting with a mayor and had a meeting with the relevant director on Jun 10.
- The both parties agreed on the resumption of practical collective bargaining.
9. 9th collective bargaining on Jun 17 (Wed) and held a sit-in strike demanding at least three collective bargaining meetings in a week.
10. 10th collective bargaining on Jun 24(Wed)
- Both parties agreed on one collective bargaining meeting per week, and the labor union started to respond to the employer’s draft.
11. 11 ~ 21st collective bargaining meetings (Jun 1(Wed) ~ Sep 24(Thu)
- Agreed on most articles of the employer’s draft excluding controversial issues concerning managerial rights, disciplinary actions, full-time union officials, etc.
12. 22 ~ 23rd collective meetings on Sep 30(Wed) and Oct 14(Wed)
- The labor union proposed a greatly compromised collective agreement.
13. Both parties agreed on the new collective agreement and held a signing ceremony on Oct 28, 2009 (Wed).

III. Background of the Employer’s Cancellation of the Collective Agreement

1. The labor union’s perspective
(1) The existing collective agreement has a provision of an automatic extension for its effective period that the current collective agreement continues to be effective while the collective bargaining is going on even though the collective agreement expired, and there is also a provision of an automatic renewal if one party does not request for a revision at the current collective agreement. Therefore, due to aforementioned articles of the current collective agreement, the labor union does not have to negotiate with the employer’s draft that is very disadvantageous compared to the existing collective agreement. This is why the labor union did not respond to the employer’s draft.
(2) The labor union cannot give up the current collective agreement because it is the labor union’s rights that they have acquired through their struggles against the employer for the last ten years.

2. The employer’s perspective
(1) The collective agreement is effective for two years and when its period expired, the collective agreement is not valid.
(2) The employer explained that what the employer is pursuing in this collective bargaining is not to revise current working conditions unfavorably, but to recover infringed managerial rights, which are the employer’s fundamental rights.
(3) Although the employer had held collective bargaining meetings with the labor union 8 times, the labor union did not respond to the employer’s draft at all. So, the employer decided to cancel the collective agreement in order to start a practical negotiation on the employer’s collective agreement draft.

IV. Contents Recovered from Infringed Managerial Rights

1. Revision of provisions requiring the labor union’s agreement and consultation
(1) ‘Establishment or revision of the regulation’
- Current: When the employer intends to establish, revise or abolish regulations and rules related to the labor union members including the rules of employment, the employer shall consult with the labor union in advance.
- Revised: This provision is replaced to Article 94 of the Labor Standards Act.
(2) ‘Restriction of hiring irregular employees like daily worker’
- Current: When the employer intends to hire irregular employees, the employer shall consult with the labor union in advance concerning necessity of employment, employment period, numbers, and positions.
- Revised: It is a principle that the employer shall not use irregular employees like daily worker on the jobs that the labor union members are engaged in.
(3) ‘Introduction of new technology’
- Current: The employer shall provide all information related to new technology to the labor union and shall introduce new technology under a consultation with the labor union.
- Revised: When the employer intends to introduce new technology or change current technology, the employer shall provide relevant information in advance to the labor union.
(4) ‘Outsourcing or subcontracting’
- Current: The employer shall determine it through mutual negotiation with the labor union in advance.
- Revised: When there is a change in employment relations or working condition, the employer shall listen to the labor union’s opinion.

2. Revision of disciplinary provisions
(1) Severity of disciplinary punishment
- Current: The types of disciplinary punishment were expressed based upon the number of misbehaviors. (For an example, disciplinary dismissal is only possible to a person who used violence to his/her superior three times.)
 This means that the employer cannot dismiss the union employee until he/she used violence against his/her superior three times. So, this article infringed on the employer’s justifiable disciplinary action.
- Revision: The type of disciplinary is determined b

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

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