• Korean Journal of Labor Studies
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• v.19 no.1
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• pp.105-137
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• 2013

This paper proposes to examine the relationship between the two trade unions of Hyundai Motor Company (HMC) - those of the regular workers and of the in-house subcontract workers - around the issue of converting irregular workers to regular ones, which has been a social issue for a long time, and, furthermore, to find a desirable solution. The politics of the in-house subcontracting rotate around three axes: the conflictive collusion between the company and the regular workers'union regarding the internal labor market; the exclusion and resistance between the company and the subcontract workers'union; and the solidaristic conflict relationship between the two unions. After the final decree by the supreme court in 2012 the conflict and collusion/solidarity relationship of the three social actors have been amplified in scale - the continuous limping of the special bargaining between the company and the unions, the intensified conflict between the company and the subcontract workers'union, and the crisis of the collusion between the branches of the two unions are all evidence of this. A clue to the solution to the issues of in-house subcontracting in HMC can be found through reestablishment of the relationship among the three actors. In order to solve the in-house subcontracting issues in HMC, phased and lawful switching from irregular to regular positions, improvement of working conditions for the irregular workers, integration of the two unions (realization of 'one company one union'), and negotiated flexibility in the internal labor market will be required. Also to be considered are installation of a special committee for the issue, and utilization of external consultants. The result would be the possibility for the corporate labor market of HMC to be composed of regular workers, legal contract workers and directly-employed contract workers, which could be realized through bilateral relations of 'the labor and management conflict partnership'.

• Korean Journal of Labor Studies
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• v.24 no.1
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• pp.107-156
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• 2018

This article examines the history of the in - house subcontracting and the stabilization of labor - management relations in the steel industry in Japan. The ratio of in-house subcontract workers among steel workers has increased steadily until the mid-2000s, and about 70% in case of the largest company. In-house subcontracting was used as a strategy of the company to increase the quantity flexibility of employment and to save labor costs. The in-house subcontracting company needed company-specialized skills, and the internal labor market was formed because the rate of full-time workers was high and the turnover rate was low. The in-house subcontractor introduced long-term business relationship with the steel factory by introducing the equipment and materials necessary for the performance of the work, and the factory implemented the productivity improvement policy of the in-house subcontractor, and the win-win relationship between the factory and in-house subcontractor was developed. The trade union did not oppose the idea that the expansion of in-house subcontracting contributed to corporate profits, the stability of employment of the members and maintenance of their working conditions. Since 2000, the steel factory has pursued the transformation of in - house subcontractors into subsidiaries, which has been supported by capital relations. By the way, since the mid-2000s, there has been an increase in the number of regular workers' employment. The major factors are as follows: more strengthened compliance with laws and regulations, the higher quality request of customers, stricter keeping of deadlines, and problem in recruiting of workers at in-house subcontract companies. The wage gap between the factory and in - house subcontracting was less at company B than at company S, and the wage level of in - house subcontracting was about 90% of the factory at company B. The relatively small gap at company B seems to be due to the union's movement of narrowing the gap, low market dominance and unfavorable labor market. The internal labor market has been formed in the in-house subcontracting, and the wage gap is not large, and the possibility of labor disputes is low. Industrial relations are stable in the in-house subcontract company as well as the factory. The stabilization of labor-management relations in the steel industry in Korea is required to reduce the wage gap between the factory and in-house subcontract enterprises by raising productivity and expanding the internal labor market at in-house subcontract enterprises.

• Korean Journal of Labor Studies
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• v.17 no.1
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• pp.177-208
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• 2011

This article examines that how in-house subcontract has been introduced and developed in metal industry in 1970s, focusing typical workplaces in steel industry. That was essential for the capital to insure control mechanism for large number of laborer because of mobilizing a large scale of capital in industrialization of heavy metal industry. In case of Pohang steel industry, this necessity was fulfilled by introduction and imitation of Japanese personnel management by being included of Japanese economic hinterland. This was embodied in both constructing internal labor market for regular workers and introducing in-house subcontracting system for contingent workers at workplaces. This was exceptional comparing in-house subcontracting system in Korean steel industry with in-house subcontracting system in advanced economies, because of disappearing in-house subcontracting system by making internal labor market. And this was closely linked by late development of Korea. Implications of Pohang steel company's case are as follows : first, late development effect in formation of employment system, second, in linking informality of Korean employment system. This implications mean that in-house subcontracting in steel industry is structured as mechanism for personnel management in large factory being influenced by industrialization of heavy industry. In this point, improvements which include wide economic solution beyond labor solution for present problem of in-house subcontracting system is desirable.

• Journal of Korean Society of Occupational and Environmental Hygiene
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• v.24 no.1
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• pp.1-13
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• 2014

Objectives: The purpose of this study is to review the debate on the Article 28(Prohibition of Inhouse-Contract for Harmful Work) of the Industrial Safety and Health Law. Methods: Literatures and recent debate for prohibition and permission of inhouse-contract for harmful work were reviewed. Proposals of revision for the Article 28 of the Industrial Safety and Health Law were also reviewed. Results: It was not found reasonable to revise the Article 28 based on increased fatal accidents or diseases in the electroplating work and heavy metals handling works that are currently listed in the Presidential Decree under the law as the harmful works. Regulation types of prohibition or authorization for any harmful work shall have inherently poor coverage since the scope of application is extremely limited. Contractors for maintenance and repair of chemical facilities may not be included in the scope of application if the harmful works are defined as chemical handling works. If harmful works are prohibited, the contractor workers may loose their jobs. Therefore, it is necessary to consider balancing job security and occupational safety and health safety. Conclusions: Various limitations were found in the Article 28 and the proposals to revise it. Currently in-house subcontracting is widely spread in the workplace. Therefore, it may be inappropriate to set one or two Article such as the Article 28 and 29 to protect in-house subcontract workers from injury and illness. It is believed that it needs fundamental redirection and new approach with new paradigm to impose occupational safety and health duty to prime contractors.