Since the revised Labor Union Act (the "Yellow Envelope" law) took effect, regional labor commissions have issued a series of rulings recognizing prime contractors as employers.
On the 7th, the Seoul Regional Labor Commission ruled that Korea Airports Corporation qualifies as the employer and ordered it to publish notice of a bargaining demand in response to a correction request filed by the National Airport Workers' Union.
The commission issued the same ruling on a correction request brought by the National Public Transport and Social Service Workers' Union against the foundations that operate Induk University (Induk Academy) and Sungkonghoe University.
Earlier, subcontractor unions requested collective bargaining from prime contractors under the Yellow Envelope law. When the prime contractors failed to publicize those bargaining demands, the unions filed correction requests with the Seoul commission on the 18th and 19th of last month.
After investigations and hearings, the adjudication committee concluded that the prime contractors exercise substantial, concrete control over subcontracted workers' labor conditions and work environments.
In the airport case, the commission found evidence that the prime contractor exercised effective control over overtime matters—such as issuing and approving overtime for subsidiary employees—supporting its authority over bargaining topics aimed at improving the overtime system.
For university facilities management services, the commission determined that the prime contractor structurally controls subcontracted workers' hours and exerts practical influence over bargaining items such as break facilities and other workplace improvements.
Under these rulings, the identified prime contractors must follow legal procedures—such as publicly announcing the bargaining demand—and engage in collective bargaining with the subcontractor unions.
The decisions are notable as the first recognition of employer status in the private sector. Earlier, on the 2nd, the Chungnam Regional Labor Commission recognized employer status for four public institutions for the first time: the Korea Institute of Nuclear Safety Technology, the Korea Atomic Energy Research Institute, the Korea Research Institute of Standards and Science, and the Korea Asset Management Corporation.
Rulings on employer status for Incheon Airport Corporation on the 8th and for three bank call centers on the 9th are scheduled, suggesting that more cases recognizing prime contractors' bargaining obligations are likely to follow.
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