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Labor authorities have ruled that Hyundai Motor must comply with the collective bargaining demands of its in-house subcontracted workers under the implementation of the revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, commonly known as the "yellow envelope law." As this marks the first such decision by a labor body, projections suggest that the controversy over the definition of employer status surrounding the automotive industry will drag on.

According to labor circles on June 15, the Ulsan Regional Labor Relations Commission accepted an application for a correction order regarding the public notice of collective bargaining demands, which was filed by the Korean Metal Workers' Union (KMWU) against Hyundai Motor.

Previously, in March, immediately following the enforcement of the yellow envelope law, the KMWU demanded collective bargaining with Hyundai Motor on behalf of 1,675 in-house subcontracted union members.

However, Hyundai Motor rejected the demand, asserting that it is not the direct employer of those workers. In response, the KMWU filed an application for a correction order with the Ulsan Regional Labor Relations Commission.

The Ulsan commission held two adjudication meetings in May and early this month but failed to reach a conclusion. However, during its third adjudication meeting held on this day, the commission ruled that corrective action is necessary regarding Hyundai Motor's failure to publicly notice the bargaining demands.

Nevertheless, the Ulsan commission did not disclose the specific grounds for its judgment, such as the scope of work performed by the subcontracted workers or the extent to which Hyundai Motor's employer status is recognized. Detailed explanations are expected to be included in the official written ruling to be delivered later.

This decision does not immediately translate into a final conclusion. Hyundai Motor stated that it will review its options after receiving the formal written ruling.

If dissatisfied with the decision, the company can file for a re-examination with the National Labor Relations Commission within 10 days of receiving the written ruling. Since the dispute could potentially escalate into administrative litigation, the legal battle between labor and management is expected to persist for a considerable period.

                                                                                                           Kim Jeong-gyu