Hanwha Ocean to Begin Collective Bargaining Including Welliv Branch ... Request for Stay of Execution Dismissed

Hanwha Ocean will enter into collective bargaining negotiations with the Welliv branch, a subcontractor responsible for in-house catering and facility management services.

According to the National Metal Workers' Union and legal circles on October 2, the 13th Administrative Division of the Seoul Administrative Court (presiding judge Jin Hyeon-seop) rejected Hanwha Ocean’s request to suspend execution of a ruling made by the Central Labor Relations Commission.

Hanwha Ocean workplace. [Photo by Hanwha Ocean]

The court stated, “There is no evidence that irreparable harm will occur due to the Labor Relations Commission's decision, nor has the urgent need to suspend the decision’s effect been sufficiently demonstrated.”

However, it drew a clear line, adding, “This does not mean that, in negotiations where the employer is obligated to engage in collective bargaining, the employer must accept all of the union’s demands or is mandatorily required to conclude a collective agreement.”

The National Metalworkers' Union Gyeongnam Branch is holding a press conference urging collective bargaining in front of the main gate of Hanwha Ocean. [Photo by Metalworkers' Union Gyeongnam Headquarters]

Previously, on March 10, the Gyeongnam Headquarters of the National Metal Workers' Union demanded that Hanwha Ocean engage in joint bargaining with the Geotong Subcontracting Branch and the Welliv Branch, following the enactment of the amendment to the Trade Union and Labor Relations Adjustment Act, commonly referred to as the 'Yellow Envelope Law.'

The union argued that Hanwha Ocean, as the prime contractor and de facto employer of both branches, is obligated to negotiate directly with them.

The Welliv Branch is a labor union composed of employees working for a subcontractor responsible for in-house catering and facility management at the Hanwha Ocean facility.

Hanwha Ocean argued that Welliv, which also operates food service businesses for large retail stores, other companies, local governments, and public enterprises, should be considered an external contractor independent from Hanwha Ocean. Therefore, the company stated that, unlike the Geotong Subcontracting Branch, which is a partner directly involved in shipbuilding operations, Welliv should not be included in the notification process regarding bargaining requests.

However, the Gyeongnam Regional Labor Relations Commission and Central Labor Relations Commission later concluded, following a union complaint, that Hanwha Ocean does constitute the employer for the Welliv Branch.

Hanwha Ocean filed an administrative lawsuit, arguing that, given examples from other companies, it was difficult to accept this legal interpretation. The company also applied for a stay of execution to halt the effect of the ruling until the court issued a final decision. This was the first lawsuit filed after the implementation of the Yellow Envelope Law.

The reasons given for requesting the stay included: the possibility of criminal penalties for unfair labor practices if the collective bargaining demands of the Welliv Branch were rejected; the potential for bargaining and agreements to be compulsory; the risk that, if a collective agreement was concluded changing labor conditions, it would be difficult to reverse even if Hanwha Ocean eventually won in the final verdict; increasing costs related to negotiations and labor relations management; and the possibility of losses arising from industrial action.

Kang Insik, head of the Metalworkers' Union Geotong Subcontractors Branch, and others are staging a high-altitude protest on a crane at the system scaffold assembly area within the Hanwha Ocean workplace. [Photo by Metalworkers' Union Gyeongnam Headquarters]

Following the administrative court's decision to dismiss the request, Hanwha Ocean, in line with its prior commitment to respect the court’s judgment, posted an official notice confirming both the Geotong Subcontracting Branch and the Welliv Branch as recognized unions for collective bargaining on the facility bulletin board in the afternoon of October 2.

Hanwha Ocean stated, “We will consult with the union and proceed with negotiations as quickly as possible.”

Currently, six union members, including Kang Insik, president of the Geotong Subcontracting Branch of the Metal Workers’ Union, have been staging a high-altitude sit-in since September 30, occupying both the roof of the preliminary painting plant and two cranes above the system scaffold assembly area inside the Hanwha Ocean facility to demand collective bargaining.

They have announced that the high-altitude protest will continue until collective bargaining is concluded. On October 6, the union plans to hold a press conference to announce the formation of the “Gyeongnam Countermeasures Committee” to urge the prime contractor to actively participate in the bargaining process.

This content was produced with the assistance of AI translation services.