[Plaintiffs, Appellants] Plaintiff 1 and 4 others (Attorney Eum Jang-bok, Counsel for the plaintiffs)
[Plaintiffs, Appellants and Appellees] Plaintiff 6 and 7 others (Attorney Eum Jang-bok, Counsel for the plaintiffs)
[Defendant, Appellee and Appellant] SsangYong Motor Company (Attorneys Lee Je-ho and 1 other, Counsel for the defendant)
[Lower Court Judgment] Seoul High Court Decision 2016Na3654 dated January 25, 2017
[Order]
All appeals are dismissed. Each party shall bear its own costs of appeal.
[Reasoning]
The grounds of appeal (including the supplementary brief on grounds of appeal submitted after the deadline for submission of the brief on grounds of appeal, to the extent that it supplements the grounds of appeal) are examined as follows.
1. As to the Plaintiffs' Grounds of Appeal
A. Grounds of Appeal Nos. 1 through 4
The court below determined, for the reasons stated in its judgment, that the bonus O/T allowance, the system improvement O/T allowance, the group personal pension insurance premium, the group accident insurance premium, the holiday gift expenses, the outing expenses, the athletic meet-related expenses, the performance points, and the research performance incentive do not constitute ordinary wages.
Upon examination of the record in light of the relevant legal principles, the above determination of the court below does not contain any error, as alleged in the grounds of appeal, such as failing to conduct the necessary examination and thereby exceeding the limits of free evaluation of evidence in violation of the rules of logic and experience, or misunderstanding the legal principles concerning the fixedness requirement and the requirement of being employed on the payment date in relation to ordinary wages.
B. Ground of Appeal No. 5
The court below, citing the legal principle set forth in the en banc Decision 2012Da89399 of the Supreme Court delivered on December 18, 2013, regarding the circumstances under which a claim for additional statutory allowances, made on the basis of adding regular bonuses to ordinary wages, becomes unacceptable as being contrary to the good faith principle, determined, as stated in its judgment, that in light of the following circumstances comprehensively considered: (1) considering the labor-management agreement concluded between the Defendant's labor and management on December 16, 2013, if bonuses were included in ordinary wages, the estimated additional burden that the Defendant would have to pay to technical employees would amount to approximately KRW 20 billion or more per year from 2010 to 2012; (2) the Defendant continued to incur significant deficits from 2008 through 2015, and around 2009, the Defendant's very existence was in jeopardy; and (3) the Defendant's labor and management agreed, from 2009, to freeze base pay, partially forgo bonuses, and not pay welfare-related benefits for the Defendant's employees, thereby attempting to overcome the Defendant's crisis by reducing various costs during the claim period at issue in this case; that if the Defendant were ordered to pay the statutory allowances and retirement benefits related to bonuses, the Plaintiffs would obtain unexpected benefits exceeding the wage level originally agreed upon, while the Defendant would incur unforeseen new financial expenditures, thereby falling into serious managerial difficulties, and therefore the Plaintiffs' above claim is contrary to the good faith principle.
Upon examination of the record in light of the relevant legal principles, the above determination of the court below does not contain any error, as alleged in the grounds of appeal, such as failing to conduct the necessary examination and thereby exceeding the limits of free evaluation of evidence in violation of the rules of logic and experience, or misunderstanding the legal principles concerning the good faith principle in relation to a claim for additional statutory allowances based on adding bonuses to ordinary wages.
C. Ground of Appeal No. 6
The court below, with respect to the claim of Plaintiff 1, Plaintiff 3, Plaintiff 4, Plaintiff 5, Plaintiff 7, Plaintiff 8, and Plaintiff 12 for the difference in the interim settlement retirement benefits recalculated by including the holiday gift expenses, outing expenses, athletic meet unity expenses, athletic meet meal expenses, athletic meet compensation (overtime work), athletic meet uniform expenses, group personal pension insurance premium, and group accident insurance premium in the average wage, rejected this portion of the claim because, as the attorney for the Plaintiffs submitted a brief stating, in effect, that "although there is a portion that increases as the above allowances are included in the average wage, since the amount is minor, that amount is not claimed," and that "if based on the Excel data submitted by the Plaintiffs, the defect in the calculation of the group personal pension insurance premium and group accident insurance premium at the first instance is cured," and that "the group personal pension insurance premium has already been recognized by the Defendant as part of the average wage, and thus there is no portion by which the average wage increases due to this," and, as calculated in accordance with the above Plaintiffs' assertions, there was no difference in the interim settlement retirement benefits arising from the recognition of the above allowances as part of the average wage.
Upon examination of the record in light of the relevant legal principles, the above determination of the court below does not contain any error, as alleged in the grounds of appeal, such as failing to conduct the necessary examination and thereby exceeding the limits of free evaluation of evidence in violation of the rules of logic and experience, or misunderstanding the legal principles concerning the calculation of retirement benefits.
2. As to the Defendant's Grounds of Appeal
In relation to the claim for additional statutory allowances arising from the recalculation of ordinary wages, the Plaintiffs submitted, before the court below, a storage medium (CD) containing an electronic file stating the amount of increase in statutory allowances that would arise if the specific allowance items asserted by the Plaintiffs were recognized as ordinary wages, and the Defendant's attorney stated at the third oral argument date before the court below that there was no dispute as to the method of calculation and the amount in the above electronic file.
The court below, having found that the Defendant did not dispute that, if the allowances at issue in this case were recognized as ordinary wages as asserted by the Plaintiffs, the unpaid statutory allowances as asserted by the Plaintiffs would arise, calculated the unpaid statutory allowances according to whether or not the allowances at issue in this case were recognized as ordinary wages.
Upon examination of the record in light of the relevant legal principles, if the Plaintiffs submitted data concerning the amount of increase in statutory allowances, including the annual leave allowance, that would arise if the allowance items at issue in this case were recognized as ordinary wages, and the Defendant did not dispute that amount of increase, it can be found that a judicial admission was established at least as to that amount (the court below did not treat even the method of calculation as being subject to the admission); therefore, there is no error, as alleged in the grounds of appeal, in misunderstanding the legal principles concerning judicial admission and the method of calculating the amount of the annual leave allowance, or in omitting judgment.
The exercise of the court's power to clarify (right of explanation) consists in pointing out, where there is a contradiction or an incompleteness or ambiguity in a party's assertions, such matters and giving the party an opportunity to correct or supplement them, and in urging the submission of evidence concerning disputed facts; an act of suggesting and encouraging the submission of requisite facts concerning a legal effect not asserted by the party, or an independent means of attack or defense, violates the principle of party presentation (the principle that the parties control the scope of the litigation) and exceeds the limits of the exercise of the power to clarify (see, e.g., Supreme Court Decision 2000Da19526 delivered on October 10, 2000). This portion of the judgment of the court below does not contain any error, as alleged in the grounds of appeal, such as insufficient examination due to the failure to exercise the power to clarify.
3. Conclusion
Therefore, all appeals are dismissed, and the costs of appeal are to be borne by each party, and it is so decided as per the Order with the unanimous consent of the participating Justices.
Justice Roh Tae-ak (Presiding Justice), Kim Jae-hyung, Min Yu-sook (Justice in charge), Lee Dong-won