A South Korean court ruled that the Cargo Workers' Union's request for specific cargo distribution percentages from companies is a legitimate exercise of their constitutional right to organize, and thus not subject to penalties under fair trade law.
In a significant ruling, the Seoul High Court determined that the Cargo Workers' Union's demands for maintaining predetermined cargo distribution ratios with logistics companies is an exercise of workers' constitutional right to organize, and therefore exempt from enforcement actions by the Fair Trade Commission (FTC). This ruling came after the union, comprised of truck drivers servicing the Samsung Heavy Industries shipyard, contested a warning issued by the FTC which deemed their actions restricted competition in the logistics sector under the Fair Trade Act.
The court found that the union's decision to establish a set ratio for cargo distribution was in direct response to a market environment characterized by excessive competition, which threatened the livelihoods of their members. The judges observed that while union members are both workers and business owners, their coordinated action was intended to prevent the introduction of unregulated competition that could undermine their earnings as the overall cargo volume was stable but the number of drivers had increased.
Furthermore, the court highlighted that such actions fall within the scope of collective bargaining and the fundamental rights of labor under the constitution. The ruling posits that activities under the purview of labor rights are exempt from being classified as violations of fair trade laws. The implications of this decision reinforce the significance of workers' rights to negotiate terms with employers and can potentially influence future labor disputes in sectors with fragmented competition, indicating judicial support for union activities aimed at safeguarding workers' interests.
