[비즈한국] As the Ministry of Employment and Labor has delayed the announcement of the results of its special labor inspection into E-Land, the E-Land labor union recently launched a joint signature campaign to urge a release. Last December, controversy erupted when reports surfaced that E-Land had forced employees to undergo "dance practice" and failed to pay them holiday work allowances. In response, the Ministry of Employment and Labor launched a special labor inspection, but results have yet to be released. With the announcement being unusually delayed, the issue was even raised during the National Assembly's audit in October. The labor union claims that there have been no improvements even after the Ministry of Employment and Labor began its inspection.
Results for Other Companies Completed Within 3–4 Months
The Ministry of Employment and Labor began its special labor inspection of E-Land World on December 22 of last year. This followed controversies, including reports that hundreds of employees were mobilized for group performances at year-end parties and were not paid holiday work allowances. At the time, the Ministry of Employment and Labor stated, “This special labor inspection is being conducted under the principle of ‘conducting special inspections without exception’ for companies causing social controversy, such as workplace bullying. We plan to respond strictly to the employer's illegal acts, including intensive inspections of violations of labor-related laws across the entire workplace and subsequent legal actions.”
However, 11 months later, the results of the labor inspection have not yet been released. Other workplaces subject to special labor inspections by the Ministry of Employment and Labor last year include Jangsu Nonghyup, The K-Tech, Task Tech, and Sunjung Livestock Cooperative. Excluding E-Land, the results for all of these were released within 3 to 4 months.
The issue was also raised during the National Assembly's audit of the Economic, Social & Labor Council on October 25. Rep. Kang Deuk-gu (Democratic Party of Korea) pointed out, “Because it has been over 10 months (since the inspection started), the company continues to engage in unfair labor practices. Since the results of the litigation are not yet out, the company seems to have maintained its stance of ‘freezing wages for this year.’ For the workers, the question of whether this ends in a few months is a desperate issue,” adding, “The union estimates that the scale of unpaid wages alone exceeds 20 billion won.”
In response, Vice Minister of Employment and Labor Kim Min-seok explained that the duration was extended because the scope of the labor inspection had expanded. Vice Minister Kim stated, “The inspection, which initially focused on workplace bullying, expanded to include the legitimacy of holiday substitution through written agreements with employee representatives, which caused the delay. Field investigations are mostly complete, and we are currently reviewing the legal aspects.”
The Ministry of Employment and Labor states that there is no fixed period for special labor inspections. An official from the Ministry told Biz Hankook, “The scheduled announcement date has not been set. There is no legally mandated timeframe. I understand there are many legal complexities involved.”
Rep. Kang Deuk-gu's office explained, “There has been no additional information submitted by the Ministry of Employment and Labor since the National Assembly audit. The Ministry has not yet announced the results, and there are no other developments.”
E-Land Claims “Improving Corporate Culture,” Union Says “No Substantial Change”
Following the “forced dance practice” controversy, E-Land promised to improve its corporate culture. Last January, E-Land World and E-Land Retail announced the launch of a corporate culture task force (TFT) in their New Year’s addresses.
An E-Land representative told Biz Hankook, “Each E-Land affiliate has diligently participated in the Ministry of Employment and Labor’s investigation. Along with this, regarding our corporate culture, we have listened to employees' opinions at each affiliate and made changes in a direction that can provide real help to staff.”
On the other hand, the labor union maintains that there have been no substantial changes. An official from the E-Land labor union stated, “It appears the labor inspection results will not be released within this year. The company does hold meetings with employee representatives selected by age group, but union representatives are not included. While the labor union suggests forming a consultative body under the labor-management council to discuss these issues, the company insists on appointing its own age-based representatives for discussions.”
Given the situation, the E-Land labor union is currently collecting signatures to demand the results of the labor inspection. The union plans to send these to the Minister of Employment and Labor. According to the petition, the E-Land labor union noted, “On the surface, they use a corporate culture improvement committee to deflect the criticism poured onto the company, but in reality, they only continue with face-saving meetings that fail to reflect the hardships on the ground or employee opinions,” adding, “Problems like aging infrastructure and high-intensity labor due to staff shortages are being pushed to the back burner.”
The reason the Ministry of Employment and Labor’s deliberation is taking so long is that it must determine the validity of the agreement regarding unpaid holiday allowances. On December 30, 2019, E-Land Retail and an employee representative agreed that “holiday work allowances will not be paid even if work is performed on public holidays,” and consequently, no additional holiday pay has been provided since January 1, 2020. The current E-Land labor union argues that this agreement is void because the employee representative at the time was appointed by the company.
The union official previously stated, “The problematic part is the non-payment of holiday work allowances. I understand that other issues have already been assessed by the Ministry of Employment and Labor. We plan to collect signatures from lawmakers, including labor unions and civic groups, with the aim of ensuring a fair outcome.”