GS Caltex tanker drivers denied union status, fight for worker recognition

Drivers of tanker trucks that transport petroleum products for South Korean energy giant GS Caltex are fighting for the right to unionize, challenging a labor board's decision that classifies them as independent business operators rather than employees.

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We didn't know that our application to establish a labor union would be rejected. We work under contract with GS MBIZ, a transport company of GS Caltex, and we can only transport petroleum products for GS Caltex based on the company's dispatch instructions.

The drivers, who work under contracts with GS MBIZ, a subsidiary of GS Caltex, argue that their work is highly controlled by the parent company. They are dispatched according to GS Caltex's product orders, use company-branded trucks, and operate under strict schedules that often require them to wait near fuel depots after completing deliveries. Their compensation is also determined by a system set by GS MBIZ, based on a percentage of transport revenue.

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The contract structure leading from 'GS Caltex - transport company GS MBIZ - tanker truck drivers' makes it difficult to deny their status as workers.

Despite operating their own expensive tanker trucks, which the Ministry of Employment and Labor has used as a basis to deny their worker status, the drivers contend that their dependence on GS Caltex and GS MBIZ for work assignments and operational directives makes them de facto employees. They point to similar legal cases, such as those involving delivery drivers, where individuals owning their vehicles were recognized as workers eligible for unionization.

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We were told by the Ministry of Labor that our tanker trucks, costing hundreds of millions of won, are why we are considered individual business operators.

The GS Caltex tanker truck union filed for establishment with the Seongnam branch of the Central Regional Employment and Labor Office in August last year but had their application rejected in October. The union has since filed an administrative lawsuit seeking to overturn the rejection. The legal proceedings are ongoing, with the next court date scheduled for next month. This case highlights a recurring issue in South Korea where the classification of gig economy and contract workers as either employees or independent contractors significantly impacts their labor rights and ability to organize.

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Even the trucks of concrete mixer drivers, whose worker status was recognized, are expensive, yet their worker status was acknowledged. I question whether the worker status is being judged based on subjective criteria.