Labor Committee Rules Principal Contractors Must Bargain with Tower Crane Unions

The Seoul Regional Labor Relations Commission has ruled that tower crane labor unions can negotiate directly with principal construction companies overseeing projects, such as Keukdong Engineering & Construction. This decision means tower crane operators can now discuss wages and working conditions directly with the main contractors responsible for the actual construction, rather than solely with subcontractors. The Korea Tower Crane Operators Union announced on the 20th that the Seoul Regional Labor Relations Commission had granted bargaining rights in a case filed against Keukdong Engineering & Construction concerning a 'Rectification of Notification of Negotiation Request.' This is the first such ruling recognizing employer status since the enforcement of the revised Trade Union Act, where a tower crane union sought recognition from a principal contractor.

The union's position is that principal contractors should be considered employers because they direct the work of crane operators and are involved in overall safety management. Construction companies, however, argue that the equipment rental firms are the legal employers and the principal contractors are merely lessees who do not hold the keys to labor management.

Previously, tower crane unions filed applications with labor committees seeking recognition of employer status from approximately 100 principal construction companies. However, the Korea Tower Crane Operators Union withdrew 90 out of 93 'Rectification of Negotiation Request' cases, and the Construction Industry Union's Tower Crane Division withdrew all 59 of its 'Bargaining Unit Separation' applications. The unions explained that they consolidated their cases to avoid overburdening the Labor Relations Commission with numerous simultaneous applications against over 100 principal contractors.

On the 10th, the Jeonnam Regional Labor Relations Commission dismissed a similar application filed by the Korea Tower Crane Union against Jungheung Construction and Jungheung Civil Engineering. Kim Kyung-soo, chairman of the Tower Crane Operators Union, stated plans to reapply for the withdrawn cases with the Labor Relations Commission. It has been suggested that the outcome of this decision could vary depending on the site operating structure of each construction company, the contractual relationships between principal and subcontractors, and the level of actual command and management. Cases involving the same union are yielding different conclusions across various regional labor committees.

Tower cranes are critical equipment that dictate the progress of construction sites; their downtime can halt the entire project. If disputes escalate into strikes leveraging bargaining rights, they can wield unparalleled power compared to other sectors. As of the 17th since the revised Trade Union Act came into effect, 384 principal contractor workplaces have received negotiation requests from subcontractor unions, branches, or chapters, involving a total of 150,432 union members. Applications for bargaining unit separation numbered 121, with 23 decided and 88 withdrawn. Rectification of Negotiation Request applications totaled 176, with 10 decided and 115 withdrawn. A total of 24 notifications confirming negotiation unions have been issued.