Top court recognizes POSCO’s subcontract workers as direct employees

SEOUL– The Supreme Court on Thursday upheld a ruling that ordered steelmaker POSCO to grant the status of direct employees to 55 of its former and current subcontract workers.

A total of 59 workers of POSCO’s subcontractors filed suits in 2011 and 2016, demanding the company recognize them as direct employees as they worked for it for more than two years.

The lower court dismissed the suits, saying it cannot be said that they worked under the direction and order of the company.

The appeals court reversed the ruling, recognizing the plaintiffs were dispatched workers who received POSCO’s instructions, albeit indirectly.

The Supreme Court upheld the appeals court’s decision for 55 of the plaintiffs for the same reason but rejected the suits by the other four people who have already passed the retirement age.

The 59 people worked at POSCO’s steel mill in Gwangyang, about 420 kilometers south of Seoul.

Of them, 57 worked there for more than two years. By law, a company should grant the direct employee status if dispatched workers have worked for more than two years for the company.

The other two claimed they were put into jobs other than the ones they were supposed to do when initially dispatched.

Source: Yonhap News Agency

scroll to top