Hyundai Motor must bargain on safety with production, cafeteria and security subcontractors

  • NLRC required Hyundai Motor to negotiate safety issues with several subcontracted operations.
  • Car masters remained excluded despite Hyundai's control over pricing, sales policies and systems.
  • Hyundai subcontractor unions may challenge the ruling through an administrative lawsuit.

Hyundai Motor (005380) must negotiate on industrial safety with subcontracted unions in production, cafeteria and security operations, the National Labor Relations Commission ruled on Aug. 31. The NLRC upheld the Ulsan Labor Relations Commission's June decision, recognizing Hyundai as an employer for safety negotiations involving factories and research centers, cafeterias, facility and cleaning services, and security and guard operations. It rejected employer status for dealership-based car masters, despite Hyundai's control over vehicle pricing, sales policies and sales systems, because independent dealerships manage labor matters. The ruling followed demands from the Korean Confederation of Trade Unions Metal Union for negotiations covering employment stability, wages and safety. The decision is not final and may be challenged in an administrative lawsuit.

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