Mercedes-Benz Dealer Union Condemns Company in Gwangju Press Conference

by drbyos

Mercedes-Benz Korea Facing Union Backlash Over Alleged Unfair Labor Practices

Archynetys.com – March 24, 2025 – A labor dispute is escalating in South Korea, threatening to disrupt operations at Mercedes-Benz Korea. The Metal Trade Union is accusing the company of union busting and unfair labor practices, potentially leading to a full-blown strike.

Union Alleges Targeted Dismissals and contract Manipulation

The Gwangju Jeonnam Branch of the Metal Trade Union, along with representatives from the Shinsung Motor Branch, held an emergency press conference earlier today to voice their grievances. They claim that the Jeonnam Regional Labor Commission has failed to address what they believe are clear instances of unfair labor practices by Shinsung Motor, a key dealer for Mercedes-Benz Korea.

At the heart of the dispute are allegations that Shinsung Motor has been systematically disadvantaging union members. According to union representatives, this includes excluding them from significant business opportunities and meetings, as well as denying collective bargaining rights. Kim Won-woo, chairman of the Shinsung Motor Branch, stated that the recent termination of eight core executives, including himself, is a blatant act of target dismissal and union oppression.

Press conference held by the Metal Trade Union and Sinseong Motor Branch
▲ On March 24th, the Gwangju Jeonnam Branch of the Metal Trade Union and the Sinseong Motor Branch hold a press conference in front of the Hwajeongjeon Market in Seo-gu, Gwangju.

Freelance Contracts and Performance-Based Discrimination

A key point of contention revolves around the employment structure of new automotive sales employees. The union asserts that these employees are engaged under freelance contracts, which the company allegedly uses as a tool to control and manipulate their employment. The union further claims that Shinsung Motor has been strategically denying union members access to lucrative sales opportunities, favoring non-union members instead. This practice, they argue, directly impacts the earnings of union members and creates a hostile work environment.

The union reports that five union officers were allegedly dismissed between July and September of the previous year, raising concerns about a pattern of anti-union activity. this situation highlights the ongoing debate surrounding the use of freelance contracts in South Korea, where concerns about worker rights and job security are increasingly prevalent. According to a recent report by the Korea Labor Institute, the number of workers classified as “non-regular” employees, including freelancers, has been steadily increasing, accounting for over 35% of the workforce in 2024.

labor Commission’s Ruling Ignored?

the union emphasizes that the Jeonnam Regional Labor Commission has already recognized some of these actions as unfair labor practices, specifically citing handling disadvantages and intervention of Gibe. Despite this recognition, the union claims that Shinsung Motor has continued to disregard the commission’s findings and proceed with actions that further undermine the union’s position.

Furthermore, the union alleges that the company has demonstrated a lack of good faith in negotiations, failing to attend 20 out of 36 scheduled negotiation sessions. They also point to the exclusion of union members wearing union vests from sales meetings as another example of the company’s disregard for their rights.

Potential Escalation and Broader Implications

An official from the union warned that Shinsung Motor’s actions are a clear attempt to dismantle the union. The new Motor, which has been forced to terminate the contract, ignoring the judgment of the unfair labor practices of Jeonnam ji -No, is trying to begin to destroy the union. The union has vowed to escalate the conflict if negotiations continue to stall.

The union is threatening a full-scale strike against Mercedes-Benz Korea, potentially involving the Hyosung Group, which they identify as the real owner of shinsung Motor. this dispute could have significant implications for Mercedes-Benz Korea’s operations and reputation in the South Korean market. The automotive industry in South Korea is known for its strong labor unions, and any perceived mistreatment of workers can quickly lead to widespread protests and boycotts.

If the negotiations break down, we will be in full struggle against Mercedes-Benz Korea, including Hyosung Group, a real owner of new Motors.

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