South Korean auto workers reinstated after year-long dispute over union dismissal

A year after being dismissed for forming a union, some workers at Shinsung Motors in Gwangju have returned to their jobs. However, the union claims the company's suppression of labor rights continues.

On May 14, the Gwangju High Court's Civil Division 4 accepted an injunction filed by eight union members against Shinsung Motors. The court suspended the effect of contract terminations until the main lawsuit is decided. It also ordered the company not to obstruct the dismissed union members from accessing showrooms, interacting with customers, or performing sales duties. The ruling mandates the company to provide necessary access to internal computer networks, and prohibits discrimination in work assignments, discount policies, and meeting participation. Violations would incur a penalty of 300,000 won per incident.

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The Gwangju High Court's decision confirms that contract terminations and non-renewals due to union activities are unfair labor practices and legally void, even for contract-based auto salespeople.

The company reinstated the workers on May 22. These workers, union leaders, were terminated on March 31 of the previous year after forming a union under the Metal Workers' Union in April 2024 to demand improved working conditions. The company had excluded them from showroom sales, citing poor performance, and then terminated their contracts. Both the Jeonnam Regional Labor Relations Commission and the National Labor Relations Commission ruled these actions as unfair labor practices and unjust contract terminations, ordering reinstatement and restoration of economic disadvantages. However, the company filed administrative lawsuits, refusing to comply.

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Given that the labor commission and now the Gwangju High Court have acknowledged the company's unfair labor practices, the company must no longer evade its responsibility.

The Metal Workers' Union stated that the Gwangju High Court's decision holds significant meaning. In a press release, the union highlighted that the ruling confirms that union suppression and contract terminations against specially employed workers cannot be legally justified. The court clearly affirmed that contract terminations or non-renewals due to union activities are unfair labor practices and legally void, even for contract-based auto salespeople.

The union is now demanding the reinstatement of the remaining 16 dismissed workers among the 24 total. "Given that the labor commission and now the Gwangju High Court have acknowledged the company's unfair labor practices, the company must no longer evade its responsibility," the union urged. "They must immediately reinstate the remaining dismissed union members, publicly apologize for union suppression and discriminatory practices, and establish measures to prevent recurrence."

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They must immediately reinstate the remaining dismissed union members, publicly apologize for union suppression and discriminatory practices, and establish measures to prevent recurrence.