[Defendant] Defendant 1 and 5 others
[Appellant] Defendants
[Defense Counsel] Duksoo Law Firm, Attorney Lee Don-myung and 5 others
[Lower Court Decision] Suwon District Court Decision 2002No1957, decided November 26, 2002
[Order]
All appeals are dismissed.
[Reasoning]
We examine the grounds for appeal.
1. Article 23, Paragraph 1, first sentence of the Constitution (헌법) provides that "the property rights of all citizens shall be guaranteed," and Article 119, Paragraph 1 provides that "the economic order of the Republic of Korea shall be based on respect for the economic freedom and creativity of individuals and enterprises," thereby declaring that our Constitution is fundamentally based on a capitalist market economic order founded on the private property system and the principle of private autonomy in economic activities. The property rights under Article 23 of the Constitution include not only the property rights of individuals but also the property rights of enterprises, and the scope of an enterprise's property rights includes not only the physical production facilities embodying the invested capital but also the "business" or "enterprise" as an organic whole in which such facilities are combined with human organization and the like. Furthermore, in order to guarantee such property rights, not only the free use and enjoyment of such property but also its disposal and inheritance must be guaranteed. Meanwhile, Article 15 of the Constitution provides that "all citizens shall enjoy freedom of choice of occupation," which includes the freedom of enterprise, meaning the freedom to establish and manage a business. Viewed from the perspective of business activities, the purport of these provisions is that every enterprise has the freedom to freely manage the business or enterprise it has chosen and to make decisions therefor, and has the freedom to change (expand, reduce, or convert) or dispose of (abolish or transfer) its business or enterprise, and this is guaranteed by the Constitution. This is collectively referred to as management rights (경영권).
However, such rights of an enterprise cannot, of course, be sacred and inviolable absolute rights. This is because not only do all freedoms and rights have their inherent limits, but Article 23, Paragraph 2 of the Constitution also provides that "the exercise of property rights shall conform to the public welfare," and the exercise of such rights by an enterprise may, in certain cases, affect the status or working conditions of workers employed by the enterprise, which may give rise to a conflict with the workers' three labor rights (노동3권).
In setting the boundaries for reconciling conflicts between management rights and the three labor rights, care must be taken to seek a solution in a direction that does not impair, but rather promotes, the economic creativity and investment motivation of enterprises, and that strengthens the competitiveness of enterprises. This is because if enterprises decline and investment decreases, employment opportunities will decrease and unemployment will increase, whereas if enterprises prosper and new investment occurs, the status of workers will improve and new employment will be created, so that, as a result, both enterprises and workers can be winners. Moreover, in resolving such problems, one must not rely solely on abstract theory, but must carefully examine the realities of the times and seek a solution appropriate to those realities.
From this perspective, taking into account the economic realities currently facing our country and the various problems revealed at the site of labor disputes in our country today, it is correct to interpret that management measures taken by the management body to strengthen an enterprise's competitiveness, such as restructuring or mergers, cannot in principle be the subject of a labor dispute, thereby promoting the strengthening of enterprise competitiveness. Of course, under this interpretation, it is true that the three labor rights of workers employed by the enterprise concerned will be restricted in the first instance, but this is merely a transitional phenomenon; once the enterprise recovers its competitiveness and investment occurs, more employment can be created and the status of workers can improve, so that, from a macroscopic perspective, this interpretation is rather beneficial to workers as a whole and serves as a path to developing the national economy. Furthermore, Article 31 of the Labor Standards Act (근로기준법) strictly stipulates the requirements for layoffs due to restructuring and the like, mandates prior consultation with workers as an essential procedure, and allows for judicial review of its validity. In addition, the Act on the Promotion of Workers' Participation and Cooperation (근로자참여및협력증진에관한법률) institutionalizes consultation between labor and management across a broad range of areas, including management matters. Taking these circumstances together, the above interpretation cannot be said to infringe upon the essential content of the three labor rights or to be contrary to the constitutional and labor-related legal system.
The Supreme Court (대법원) has already repeatedly stated its position that whether or not to implement corporate restructuring is a matter belonging to a high-level management decision by the management body, and therefore, in principle, cannot be the subject of collective bargaining, and that unless there are special circumstances such as the restructuring being pursued with improper intent without urgent business necessity or reasonable grounds, the legitimacy of purpose cannot be recognized for a labor dispute action undertaken by a labor union to oppose its implementation (Supreme Court Decision 99Do5380, decided February 26, 2002; Decision 2000Do4169, decided February 11, 2003; Decision 2002Do5881, decided February 28, 2003; Decision 2002Do5883, decided March 14, 2003; Decision 2002Do6060, decided March 28, 2003; etc.). The grounds for appeal seek to have this Supreme Court position changed; however, for the reasons stated above, in light of the current realities of our country, this position cannot be changed. This ground for appeal is not accepted.
2. As a general rule, the interpretation of a declaration of intent is to be made according to the language used in its expression; however, such textual interpretation must seek the meaning of the language of the provision in question not only from that provision alone but also within the overall purport of the declaration of intent that includes it, and there are cases where a normative interpretation is necessary, taking into account the circumstances and situation and atmosphere at the time the declaration of intent was made, as well as its appropriateness.
The lower court's measure, in the same vein and for the reasons stated in its judgment, of interpreting "prior agreement" in Article 1 of the Collective Agreement Implementation Agreement (단체협약시행협정서) in this case as meaning "prior consultation," and determining that such language could not affect the assessment of the legitimacy of the labor dispute action in this case, is acceptable, and there is no illegality therein as alleged. This ground for appeal is also not accepted.
3. Furthermore, upon examination of the record, there is no illegality, such as a violation of the rules of evidence, in the lower court's determination that the primary purpose of the labor dispute action in this case was to oppose the government's gas industry restructuring policy and its legislative policy, and was, in substance, aimed at opposing the implementation of the restructuring itself. Even if criticism such as that alleged in the grounds for appeal could be raised against the gas industry restructuring plan prepared by the government, this fact alone cannot establish that there were special circumstances such as the restructuring plan being pursued without urgent business necessity or reasonable grounds. This ground for appeal is likewise without merit.
4. Accordingly, all appeals are dismissed, and it is so ordered by the unanimous opinion of the participating Justices, as stated in the Order.
Justice Park Jae-yoon (Presiding Justice), Seo Seong, Lee Yong-woo (Justice in charge), Bae Ki-won