Following the implementation of the Yellow Envelope Act last March, a court has delivered its first ruling regarding the employer status of main contractors.

The 3rd Administrative Division of the Seoul Administrative Court (Presiding Judge Ho Sungho) dismissed an injunction request filed yesterday by Gukdong E&C against the chairperson of the National Labor Relations Commission (NLRC), seeking to suspend a corrective order regarding the public announcement of a request for collective bargaining.

Previously, the Korea Tower Crane Operators Union requested collective bargaining with Gukdong E&C, but upon refusal, applied to the Labor Relations Commission for a corrective order to publicly announce the bargaining request.

The Seoul Regional Labor Relations Commission ruled that Gukdong E&C qualifies as a prime contractor employer and issued a corrective order to announce the bargaining request.

The NLRC also dismissed Gukdong E&C's request for a retrial, upholding the same rationale as the initial decision.

In response, Gukdong E&C filed a lawsuit to cancel the NLRC's retrial decision, along with an injunction request against both the initial and retrial decisions of the Labor Relations Commission.

However, the court dismissed the injunction request, stating that the mere announcement of a bargaining request does not create an obligation for collective bargaining.

The judicial bench explained, "The initial decision merely imposes a public law obligation on Gukdong E&C to announce the fact that a bargaining request was made," adding, "It does not directly create or alter the legal relationship between Gukdong E&C and the union."

The court further noted, "The initial decision does not create a new obligation for Gukdong E&C to respond to or conclude collective bargaining, nor can it be evaluated as changing the judgment on whether refusing to bargain constitutes an unfair labor practice," concluding that "the circumstances raised by Gukdong E&C are difficult to recognize as damages stemming from the initial decision."

Additionally, addressing Gukdong E&C's argument that fulfilling the announcement obligation could lead to industrial action and subsequent damages equivalent to delayed compensation, the court rejected it, stating, "It is difficult to view the initial decision and the injunction as directly related to the occurrence of industrial action."

With this dismissal decision, the effect of the Labor Relations Commission's corrective order remains intact.

However, the determination regarding Gukdong E&C's employer status as a main contractor will be handled in the main lawsuit.

The NLRC stated, "This decision confirms that Gukdong E&C has a public law obligation to announce the bargaining request in accordance with the Labor Relations Commission's corrective order," and added, "We will closely monitor and respond to the progress of the upcoming main lawsuit."

(Photo: Yonhap News)