Grouped into a Single Bargaining Unit?
Consider Applying for Separate Bargaining Units
The Single Bargaining Channel Rule: One Workplace, One Bargaining Channel
Where multiple trade unions exist in a workplace, collective bargaining must, in principle, be conducted through a bargaining representative union designated under the Single Bargaining Channel Procedure in accordance with the Trade Union and Labor Relations Adjustment Act (“Trade Union Act”).
Under this system, bargaining is conducted through a single channel, and one collective agreement applies. This is intended to prevent confusion arising from separate negotiations by multiple unions, enhance bargaining efficiency, and ensure that employees’ working conditions are determined in a unified manner, rather than being influenced by the relative strength of any particular union, thereby maintaining stable labor-management relations.
A Narrow Exception: Employer Consent to Separate Bargaining
Exceptionally, where the employer agrees to bargain separately with each trade union, the single-bargaining-channel procedure is not required. Apart from this exception, a bargaining representative union must be designated through the single bargaining channel procedure.
When a Single Bargaining Unit Becomes Unreasonable
That said, where the working conditions or employment status of employees in certain job categories differ significantly from those of other employees, it would be highly unreasonable to force them to be grouped together with other employees in a single bargaining unit for negotiations. Accordingly, the Trade Union Act provides for a system known as a determination to separate bargaining units.
No DIY Separation: Mandatory Review by the LRC
A trade union or an employer seeking to separate a bargaining unit must file an application with the Labor Relations Commission (LRC) and obtain a determination to that effect. The bargaining unit may not be separated arbitrarily by agreement between labor and management. In order to separate a bargaining unit, a determination by the LRC is mandatory.
※ Criteria for Determining Bargaining Unit Separation
The criteria for determining whether bargaining units should be separated have been established through case law. Recently, the Ministry of Employment and Labor has codified these criteria through amendments to the Enforcement Decree of the Trade Union Act as follows:
| Significant Differences in Working Conditions | Nature and content of duties, work methods, work environment, labor intensity, degree of responsibility, wage system/components/payment methods, working hours, holidays/leave, employee benefits, compensation /personnel regulations, etc. |
| Employment Type | Contract type/method, job classification, recruitment process, retirement age, personnel exchange, etc. |
| Bargaining Practices | Scope of union organization, eligibility for union membership, prior practices of collective bargaining between labor and management, the manner in which such bargaining has been conducted, and the scope of application for collective bargaining subjects, etc. |
| Other Relevant Considerations | Whether interests among workers are common or similar; whether representation of interests by other labor unions is appropriate; whether there is a need to establish uniform working conditions; whether a stable bargaining system can be established; whether maintaining the bargaining unit may cause conflicts between labor unions and distort labor-management relations; whether there are special circumstances where considering the parties' intentions can achieve the purpose of bargaining unit separation or integration, the parties' intentions, etc. |
Employers Must Comply: The Binding Effect of LRC Determinations
If the LRC issues a determination to separate bargaining units, the employer must comply with such determination. Where no collective agreement is currently in place, a trade union that has obtained such a determination to separate bargaining units may, at any time, demand separate collective bargaining with the employer.
March 2026 Amendments Set to Reshape Labor Relations
To date, applications for determinations to separate bargaining units have been relatively few, and the approval rate has not been high. However, following the amendments to the Trade Union Act that came into force in March 2026, a substantial increase in applications to separate bargaining units is expected.
Expanded Definition of “Employer” and Its Impact on Bargaining Units
Under the amended Trade Union Act, the concept of “employer” as a party to collective bargaining has been expanded. Specifically, the definition now includes not only the party to the employment contract, but also any person who is in a position to effectively and specifically control or determine employees’ working conditions, even without being a direct contractual employer. As a result, situations may arise in which a client company is required to engage in collective bargaining with the trade union(s) of its subcontractor(s). In such cases, the subcontractor union(s) and the client company’s union(s) would be required to jointly proceed through a single bargaining channel procedure.
In this regard, the Ministry of Employment and Labor has officially expressed the view that it is desirable to separate the bargaining units between the unions of client company and subcontractors, as well as among the unions of subcontractors themselves. Accordingly, a significant increase in applications by subcontractor unions for separating bargaining units is anticipated going forward.
Considering an Application to Separate Bargaining Units?
Following the recent amendments to the Trade Union Act, subcontractor unions may now have the opportunity to demand collective bargaining from the client company. However, given that their working conditions, employment structures, and bargaining priorities may differ significantly from those of the client company’s unions, it may be necessary to consider applying for separating bargaining units. Obtaining such a determination may be essential to ensuring your union’s bargaining autonomy and the effective representation of the specific interests of your members.
If your union is concerned that inclusion in a single bargaining unit would undermine its ability to effectively negotiate on behalf of its members, it may be advisable to consider filing an application with the Labor Relations Commission at an early stage. Our office provides legal advisory and representation services throughout the entire process, from assessing the likelihood of a successful determination to preparing and filing the application and representing your union before the LRC.
Please feel free to contact us should you wish to explore whether separating bargaining units would be appropriate in your particular circumstances.
Consider Applying for Separate Bargaining Units
Where multiple trade unions exist in a workplace, collective bargaining must, in principle, be conducted through a bargaining representative union designated under the Single Bargaining Channel Procedure in accordance with the Trade Union and Labor Relations Adjustment Act (“Trade Union Act”).
Under this system, bargaining is conducted through a single channel, and one collective agreement applies. This is intended to prevent confusion arising from separate negotiations by multiple unions, enhance bargaining efficiency, and ensure that employees’ working conditions are determined in a unified manner, rather than being influenced by the relative strength of any particular union, thereby maintaining stable labor-management relations.
Exceptionally, where the employer agrees to bargain separately with each trade union, the single-bargaining-channel procedure is not required. Apart from this exception, a bargaining representative union must be designated through the single bargaining channel procedure.
That said, where the working conditions or employment status of employees in certain job categories differ significantly from those of other employees, it would be highly unreasonable to force them to be grouped together with other employees in a single bargaining unit for negotiations. Accordingly, the Trade Union Act provides for a system known as a determination to separate bargaining units.
A trade union or an employer seeking to separate a bargaining unit must file an application with the Labor Relations Commission (LRC) and obtain a determination to that effect. The bargaining unit may not be separated arbitrarily by agreement between labor and management. In order to separate a bargaining unit, a determination by the LRC is mandatory.
The criteria for determining whether bargaining units should be separated have been established through case law. Recently, the Ministry of Employment and Labor has codified these criteria through amendments to the Enforcement Decree of the Trade Union Act as follows:
| Significant Differences in Working Conditions | Nature and content of duties, work methods, work environment, labor intensity, degree of responsibility, wage system/components/payment methods, working hours, holidays/leave, employee benefits, compensation /personnel regulations, etc. |
| Employment Type | Contract type/method, job classification, recruitment process, retirement age, personnel exchange, etc. |
| Bargaining Practices | Scope of union organization, eligibility for union membership, prior practices of collective bargaining between labor and management, the manner in which such bargaining has been conducted, and the scope of application for collective bargaining subjects, etc. |
| Other Relevant Considerations | Whether interests among workers are common or similar; whether representation of interests by other labor unions is appropriate; whether there is a need to establish uniform working conditions; whether a stable bargaining system can be established; whether maintaining the bargaining unit may cause conflicts between labor unions and distort labor-management relations; whether there are special circumstances where considering the parties' intentions can achieve the purpose of bargaining unit separation or integration, the parties' intentions, etc. |
If the LRC issues a determination to separate bargaining units, the employer must comply with such determination. Where no collective agreement is currently in place, a trade union that has obtained such a determination to separate bargaining units may, at any time, demand separate collective bargaining with the employer.
To date, applications for determinations to separate bargaining units have been relatively few, and the approval rate has not been high. However, following the amendments to the Trade Union Act that came into force in March 2026, a substantial increase in applications to separate bargaining units is expected.
Under the amended Trade Union Act, the concept of “employer” as a party to collective bargaining has been expanded. Specifically, the definition now includes not only the party to the employment contract, but also any person who is in a position to effectively and specifically control or determine employees’ working conditions, even without being a direct contractual employer. As a result, situations may arise in which a principal company (a company that outsources part of its business operations to a subcontractor) is required to engage in collective bargaining with the trade union(s) of its subcontractor(s). In such cases, the subcontractor union(s) and the principal company’s union(s) would be required to jointly proceed through a single bargaining channel procedure.
In this regard, the Ministry of Employment and Labor has officially expressed the view that it is desirable to separate the bargaining units between the unions of principal company and subcontractors, as well as among the unions of subcontractors themselves. Accordingly, a significant increase in applications by subcontractor unions for separating bargaining units is anticipated going forward.
Following the recent amendments to the Trade Union Act, subcontractor unions may now have the opportunity to demand collective bargaining from the principal company. However, given that their working conditions, employment structures, and bargaining priorities may differ significantly from those of the principal company’s unions, it may be necessary to consider applying for separating bargaining units. Obtaining such a determination may be essential to ensuring your union’s bargaining autonomy and the effective representation of the specific interests of your members.
If your union is concerned that inclusion in a single bargaining unit would undermine its ability to effectively negotiate on behalf of its members, it may be advisable to consider filing an application with the Labor Relations Commission at an early stage. Our office provides legal advisory and representation services throughout the entire process, from assessing the likelihood of a successful determination to preparing and filing the application and representing your union before the LRC.
Please feel free to contact us should you wish to explore whether separating bargaining units would be appropriate in your particular circumstances.
