[Plaintiffs, Appellants] Plaintiff 1 and 45 others (Counsel: Attorney Lee Young-su)
[Defendant, Appellee] Defendant, the bankruptcy trustee of the bankrupt Korea Industrial Securities Co., Ltd. (Counsel: Attorney Kim Sook)
[Judgment Below] Seoul High Court Judgment 2000Na51416, dated May 9, 2001
[Order]
All appeals are dismissed. The costs of appeal are to be borne by the Plaintiffs.
[Reasoning]
1. A collective agreement is an agreement concluded between a labor union and an employer or an employers' association concerning working conditions and other matters arising in labor-management relations. Under the principle of autonomy of collective agreements, a labor union may conclude with the employer not only a collective agreement that changes working conditions favorably but also one that changes working conditions unfavorably. Therefore, unless there are special circumstances, such as the collective agreement unfavorably changing working conditions being so lacking in reasonableness that it can be seen as deviating from the purposes of the labor union, such an agreement between labor and management cannot be deemed invalid, and the labor union is not required to obtain individual consent or authorization from the workers in advance for such an agreement (see Supreme Court Decision 99Da7572, decided November 23, 1999; Supreme Court Decision 99Da67536, decided September 29, 2000, etc.).
The court below, based on the evidence it adopted, found the following facts: the bankrupt company was established on April 25, 1991, with full capital contribution from the Korea Development Bank; as the securities market continued to stagnate from 1995, and due to the crisis in the domestic financial market from 1997 and the successive bankruptcies of large corporations, the company's management deteriorated with continuously accumulating deficits; its sole shareholder, the Korea Development Bank, instructed the bankrupt company to prepare a management improvement plan; accordingly, the bankrupt company prepared a "Management Innovation and Restructuring Implementation Plan" for the early stabilization of normal management, and the Korea Development Bank promised support such as additional capital contribution to the bankrupt company in response; the bankrupt company requested the Korea Development Bank around the end of December 1997 to provide funds for a capital increase, but the bank instructed the company to first implement measures that could be carried out internally; accordingly, on January 9, 1998, the bankrupt company prepared an implementation plan (hereinafter "the Implementation Plan"), consisting of the "1998 Compensation System Operation Plan, Job Classification System Operation Plan, Workforce Restructuring Committee Operation Plan, and Special Retirement Allowance Payment Conditions," as concrete implementation measures excluding capital increase, and the representative director of the bankrupt company and Yoo Young-cheol, the chairman of the labor union, agreed to its implementation and each signed and sealed it; examining the contents of the Implementation Plan, the 1998 Compensation System Operation Plan provided that "the 1998 salary system shall be operated as an annual salary system, and the employees' compensation level shall be set at a level reflecting a 10% reduction of the 1998 base salary"; the Job Classification System Operation Plan provided that "the company's personnel organization shall be divided into 7 job groups by business area, employees shall be assigned to one of these job groups, and employees shall be developed as experts in the business field of the job group to which they belong, in order to improve the productivity of the personnel organization"; the Workforce Restructuring Committee Operation Plan provided that "a Workforce Restructuring Committee shall be established within the company to assess employees' aptitude and ability, and based on the assessment results, decisions on job group assignment shall be made and personnel subject to reduction shall be selected; personnel subject to reduction shall not be assigned to a job group and shall be recommended to retire, and if they refuse, a layoff shall be implemented"; and the Special Retirement Allowance Payment Conditions provided for "the payment conditions of retirement allowances to be paid to those who fail to receive a job group assignment and retire specially at the company's recommendation," among other matters; the bankrupt company had been paying employees' salaries in accordance with the compensation regulations amended on August 29, 1997, for the previous 1997 fiscal year (from April 1, 1997 to March 31, 1998), but beginning April 1, 1998, the start of the 1998 fiscal year, it began paying reduced salaries in accordance with the above Compensation System Operation Plan; meanwhile, prior to this, on June 20, 1997, the bankrupt company had entered into a "Supplementary Agreement on Wages" with the labor union, agreeing that "the 1997 wage increase shall be 4.5% based on the base salary, but shall be frozen for the 1997 fiscal year in consideration of management difficulties, and the increased amount shall be applied from April 1, 1998, within the range of personnel expense and cost savings for the 1997 fiscal year"; therefore, the wages reduced from April 1, 1998 under the above Compensation System Operation Plan were an amount equivalent to 10% of the 1998 wages, calculated on the premise that the 1997 base salary would be increased by 4.5% from the same date. Based on these findings, the court below determined that the Compensation System Operation Plan dated January 9, 1998 was a collective agreement concluded between the bankrupt company and the labor union, and that its effect extended to the Plaintiffs, who were union members, regardless of whether they individually consented thereto, and accordingly rejected the Plaintiffs' argument that the agreement was invalid as being in violation of the existing collective agreement and compensation regulations. Examining the record in light of the legal principles set forth above, the fact-finding and determination of the court below are all justified, and there is no illegality therein such as violation of the rules of evidence or misapprehension of legal principles as argued in the grounds of appeal, and the Supreme Court decisions cited by the Plaintiffs concern different facts and are not appropriate to invoke in this case.
2. The requirement that a representative or delegate of a labor union, after agreeing on the contents of a collective agreement with the employer as a result of collective bargaining, must again undergo a resolution of the general meeting of union members regarding the approval or disapproval of the proposed agreement, comprehensively and fully restricts the representative's authority to conclude collective agreements, thereby effectively hollowing out and rendering nominal the authority to conclude collective agreements, and is contrary to the purpose of Article 29, Paragraph 1 of the Trade Union and Labor Relations Adjustment Act (노동조합및노동관계조정법) (see Supreme Court en banc Decision 91Nu12257, decided April 27, 1993; Supreme Court Decision 91Nu10787, decided May 11, 1993; Supreme Court Decision 2001Da77970, decided June 28, 2002, etc.).
The court below determined that even though Yoo Young-cheol, the chairman of the labor union, did not undergo a resolution or ratification by the general meeting or the delegates' assembly of the labor union after agreeing with the bankrupt company on the above Compensation System Operation Plan, which was a collective agreement, as a result of collective bargaining, the collective agreement could not be deemed invalid, and accordingly rejected the Plaintiffs' argument that the collective agreement violated the principle of good faith or constituted an abuse of authority. Examining this in light of the record and the legal principles set forth above, it is deemed justified, and there is no illegality such as misapprehension of legal principles as argued in the grounds of appeal.
3. The court below considered the Plaintiffs' argument that the bankrupt company was obligated to refund the returned wages to the Plaintiffs, on the ground that at the extraordinary general meeting of shareholders held on July 25, 1998, the bankrupt company resolved to dissolve the company, and in doing so resolved that "the standard for payment of retirement consolation money to employees dismissed due to the dissolution resolution shall, considering various circumstances, be paid at the level of the five exiting banks as of June 29, 1998," and that accordingly, on the same date, an agreement was reached between the bankrupt company and union chairman Yoo Young-cheol that "the bankrupt company shall pay retirement consolation money at the same level as the payment conditions of the exiting banks that are expected to be applied in the future." In light of the facts found in the judgment and the content of the above wording, the court below rejected this argument on the ground that this merely meant that, in setting the standard for payment of retirement consolation money, the case of the exiting banks would be referenced and payment would be made in the name of a dismissal allowance, and did not mean that the wages reduced and paid under the above Compensation System Operation Plan would be refunded to the Plaintiffs.
Examining the record, the determination of the court below is justified, and since it is clear that the above determination of the court below includes the purport of rejecting the Plaintiffs' argument concerning the agreement between labor and management dated July 25, 1998, there is no illegality such as incomplete deliberation or omission of judgment as argued in the grounds of appeal. Furthermore, the court below's rejection of the Plaintiffs' argument that the wages before the reduction should be used as the standard in calculating the dismissal allowance, etc. to be paid to the Plaintiffs, is also justified, and therefore the Plaintiffs' argument on this point in the grounds of appeal cannot be accepted either.
4. Where a company dissolved for the purpose of terminating its business validly dismisses an employee in the course of liquidation, the employment relationship between the employer company and the employee is thereby terminated. Even if the company under liquidation re-employs some of the dismissed employees to carry out liquidation duties, etc., absent special circumstances, the employment relationship is newly established from that point, and therefore the retirement allowance for the period after re-employment must be calculated starting from the date of re-employment (see Supreme Court Decision 94Da52768, decided October 12, 1995, etc.).
The court below, based on the evidence it adopted, found the following facts: the bankrupt company resolved to dissolve at the extraordinary general meeting of shareholders on July 25, 1998, and decided to suspend all business operations from July 27 of that month and to perform only the work necessary for investor protection and for carrying out liquidation procedures; accordingly, the bankrupt company notified all 395 employees then in service that their employment relationship would terminate as of July 27, 1998, while orally notifying approximately 100 selected employees that they were to perform liquidation duties; the employees who received such notification thereafter remained with the bankrupt company, continuing to work as contract employees while performing the company's liquidation duties; as time passed and the volume of liquidation work decreased, they were dismissed by the bankrupt company sequentially, in part each month, and when the bankruptcy was declared on March 13, 1999, the remaining employees were also all treated as retired from the bankrupt company; and the Plaintiffs received retirement allowances due to their retirement as of July 27, 1998. Based on these findings, the court below determined that the continuous employment relationship between the Plaintiffs and the bankrupt company was severed by the retirement as of July 28, 1998. Examining this in light of the record and the legal principles set forth above, this measure of the court below is justified, and there is no illegality, such as a violation of the rules of evidence affecting the judgment or misapprehension of legal principles, as argued in the grounds of appeal.
5. Therefore, all appeals are dismissed, and the costs of appeal are to be borne by the losing party, as set forth in the Order.
Justices Seo Seong (Presiding Justice), Lee Yong-woo, Park Jae-yoon (Justice in Charge)