[Unofficial translation provided by the Business & Human Rights Resource Centre]

“Court rules Korean GM’s differential payment of regular wages is an unfair labour practice”, 30 October 2024

The Supreme Court determined that the differential payment of unpaid wages based on whether workers filed a regular wage lawsuit constitutes not only an unfair labour practice due to interference in union organisation and operation but also an unfair practice for imposing disadvantages based on union activities.

…The case arose after Korean GM's management paid ‘ten years’ worth of unpaid wages to clerical workers who did not participate in the regular wage lawsuit, following a final Supreme Court ruling on the matter. …However, payments to those who did file suit were limited to the periods claimed in the lawsuit. In response, the Korean Metal Workers' Union(KMWU) lodged a complaint with the National Labour Relations Commission, alleging unfair labour practices.

…The court acknowledged both the interference and the imposition of disadvantages as unfair labour practices…It stated that “the differential payments are aimed at altering the decision-making or actions of the participants (KMWU) regarding the maintenance and improvement of working conditions, in line with the employer’s intentions,” thus constituting an unfair practice of interference.