He won a job transfer with an individual salary of 100 million… Unleashing a knife on employment succession

The government has decided to issue corrective orders to around 60 domestic companies, including Kia, which have a clause on “employment succession” in their collective agreements. This is in response to the point that the clause which gives priority to employing the children of workers deprives young people of the opportunity to find a job.

According to the industry on the 22nd, the Anyang branch office of the Central Regional Employment and Labor Administration of the Ministry of Employment and Labor sent an official letter to Kia labor and management early this month stating that ‘Article 26 (priority employment and special employment) the collective agreement was deemed to have breached the relevant law’ and rectification was ordered. This is the first time a rectification order has been issued in a Kia joint agreement.

The clause in question includes that ‘one member of the immediate family of a union member who died of illness while in office, a retired employee, and the child of a long-term worker (over 25 years) will be employed first. ‘. The Ministry of Employment and Labor decided that this provision goes against Article 11, Paragraph 1 (equal rights) of the Constitution and Article 7, Paragraph 1 (equal employment opportunities) of the Framework Act on Employment Policy.

The Anyang branch office plans to officially issue a rectification order after going through a decision by the Gyeonggi Regional Labor Relations Commission. Kia’s labor union strongly opposed the remedial order, saying it was “union killing.” A union official said, “We will do our best to fight the collective bargaining agreement against the government.” The government intends to take legal action if Kia Labor and management do not review the provision.

63 companies have legacy employment provisions. According to Representative Lee Joo-hwan Lee, Hyundai Steel (Pohang Plant 1 and Dangjin Plant), Hyosung (Changwon Plant), STX Engine (Site 1), Hyundai Wia, etc. have signed joint agreements for preferential recruitment and special.

“Ensuring a fair chance”… It was the government with no swords in the employment succession that put down the ‘good spoon’
Kia union protests against ‘union killing’… Even if hereditary succession is maintained, ‘punishment with a cotton bat’

In November last year, when the company began hiring new production workers for the first time in five years, Kia’s labor union demanded that the company prioritize hiring retirees and the children of long-term workers who have worked for more than 25 years. It was argued that Article 27, Paragraph 1 of the collective agreement should be followed on the nature of ‘succession of employment’. At the time, the industry noted that it was “a modern version of the music book system that will pass a ‘direct spoon’ to your children beyond a golden spoon.”

A union that will transfer even ‘God’s workplace’

The reason why the government has decided to issue corrective orders to 60 companies that have a “succession of legacy employment” clause in their collective bargaining agreements is because of the social atmosphere that fair employment opportunities should be given to young people. A government official said, “In the last government, the employment succession where the Seoul Transportation Corporation and others converted their relatives to full-time workers was revealed, which frustrated many young people.” ” he explained. ‘Guaranteeing fair employment opportunities’ is also President Yoon Seok-yeol’s national task.

Kia, which is at the heart of the debate, is a conglomerate that many job seekers envy. As of last year, the average annual salary of the workers reached 101 million won. If you work for 25 years, even after you retire, you can buy a car at a 25% discount every three years until age 75, and there are huge welfare benefits. This is the background of criticism that it is unfair to have the opportunity to join ‘God’s Work’ first because their parents have gone hungry. The removal of the legacy employment clause in the collective agreement by Hyundai Motor Company in 2019 was also a measure that took social criticism into account.

Some companies subject to correction orders even have an ‘extra points’ system for employees’ children. SeAH Changwon Special Steel adds 10 points (out of 100 points) when hiring retired children. Hyundai Wia also allowed additional points to be put into the collective agreement regarding the hiring of retirees. They are in violation of Article 11, Paragraph 1 (Equal Rights) of the Constitution, and are all subject to this remedial order.

Punishment with a cotton bat for not complying with the correction procedure

KIA unions are protesting fiercely against the government’s rectification order. A union official said, “We will do our best to fight to defend the collective bargaining agreement against the government, which is taking the lead in killing the union.”

The industry explains that the reason why the KIA union is protesting is that many of its members have children who are about to get a job. As of last year, Kia had 18,874 employees aged 50 or over, accounting for 53.2% of the total. The number of retirees is also increasing rapidly. Kia retirees in their 50s and 60s almost doubled from 570 in 2019 to 904 last year.

Labor claims that the legacy employment clause “has already become private” and that “there are very few cases where workers have actually been employed through collective agreements.” In response, the government argues that if it is private culture as the labor community insists, it should be abolished. The government explains that if it is left as it is, it can be abused at any time, and it is difficult for outside companies to know that the children of workers are given priority.

It is not clear whether large company unions will accept the government’s remedial measures. The level of legal penalty the union will face when it upholds the legacy employment clause is only a ‘fine of 5 million won or less’. Attention is drawn to the fact that it will not be possible to eliminate the hereditary succession of employment without stricter penalties.

Politicians are still silent on this issue. Whenever the legacy employment issue broke out, related bills were proposed several times, but they were automatically deleted at the end of the National Assembly session without much discussion. The ‘partial amendment to the Act on the Operation of Public Institutions’, proposed by Representative Jung Woo-taek last May, saying, “We will prevent the hereditary succession of employment in public institutions,” is also pending in the National. Assembly without much discussion. An industry insider said, “The level of punishment must be raised significantly by revising the law.”

Correspondents Kim Il-kyu/Park Han-shin/Kim Hyung-gyu/Kwak Yong-hee black0419@hankyung.com