National Labor Relations Board Rules Hanwha Solutions Directly Employs Catering Union Members
The National Labor Relations Board (NLRB) has officially recognized Hanwha Solutions as the employer for members of the Welliv branch, a labor union representing workers in catering and facility management. This landmark decision clarifies the scope of collective bargaining responsibilities, bringing renewed attention to the interpretation of labor laws regarding direct employment.
Key Ruling in Union Recognition Case
In a significant ruling on the 15th, the NLRB upheld an earlier decision regarding Hanwha Solutions’ dispute with the Geje-Tongyeong-Goseong branch of the Korean Confederation of Trade Unions. The board dismissed Hanwha Solutions’ appeal, solidifying its stance that the company is indeed an employer of the Welliv branch’s union members. This recognition of Hanwha Solutions’ employer status for the Welliv branch is central to the board’s determination.
The NLRB concluded that Hanwha Solutions possesses the authority to exert substantial and specific control over the working conditions of these employees. The board emphasized that for the single-window system of collective bargaining to apply under labor law, it must first be determined whether the entity is a party to the negotiation, specifically, whether it falls under the definition of an ’employer’ as stipulated in Article 2, Section 2 of the Labor Relations Act.
Employer Control Over Working Conditions
Delving into the specifics, the NLRB stated, “The renovation and improvement of work facilities such as kitchens, rest areas, and company buses, where union members are employed, are difficult for Welliv to undertake independently without the cooperation and approval of Hanwha Solutions, the owner.” This reasoning underscores Hanwha Solutions’ direct influence over essential aspects of the employees’ work environment.
The Welliv branch comprises workers employed by subcontracted companies who are responsible for Hanwha Solutions’ catering, company bus operations, and facility management. These workers have been demanding negotiations for improved working conditions, including measures for workplace safety and health, adjustments to working hours, and the establishment of a wage increase standard.
Previous Exclusion and Subsequent Reversal
Previously, Hanwha Solutions had excluded the Welliv branch’s approximately 450 members from collective bargaining notifications, initially only including the Geje-Tongyeong-Goseong branch. In response, the Welliv branch filed an objection. The Gyeongnam Regional Labor Relations Commission then ruled that these workers should be included in collective bargaining.
However, the Gyeongnam Regional Labor Relations Commission had previously deferred its decision on the employer status, stating that “the outcome may differ depending on the specific circumstances of each case.”
Potential for Further Legal Action
Hanwha Solutions has the option to challenge this latest NLRB decision. If the company chooses to appeal, it can file an administrative lawsuit within 15 days of receiving the official ruling.
