FTC IMPOSE SANCTIONS AGAINST KCTU BRANCH

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The Fair Trade Commission has begun imposing sanctions on a construction equipment branch of the Korean Confederation of Trade Unions. The branch allegedly demanded that construction companies use only the equipment of manufacturers from labor unions. It's the first instance of the FTC imposing sanctions against a labor union. The question is: can a labor union be viewed as an enterprise organization?

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Labor union members from the KCTU stage a rally in front of a construction site. They set up a barricade of vehicles, leaving room for just one truck to pass through. The KCTU's Busan Construction Equipment Branch has staged rallies at construction sites in various regions since 2020. It demanded that only the equipment of companies belonging to trade unions be used. When construction companies refused to do so, collective action was taken. Some construction firms had to terminate their existing contracts and sign new deals with businesses from labor unions.

[Soundbite] Song Chi-young(Construction Machinery Individual Council) : "When their demand was rejected, they set up their equipment. If that didn't work, they staged rallies at the main contractors' construction sites."

The FTC says enterprise organizations are not allowed to do this. The Fair Trade Act defines an "enterprise organization" as an association or a federation organized by two or more enterprises for the purpose of increasing their common interests, regardless of its form.

[Soundbite] Lee Tae-hui(Busan branch, FTC) : "Labor union members are businesses that own construction equipment under the Construction Machinery Equipment Act and register as construction equipment lenders for profit. It's an organization consisting of enterprises."

The FTC has sent its examination report to the branch. The report calls for a fine and prosecution. It's the first instance of the FTC viewing a labor union as an enterprise organization. The KCTU has vowed to take legal action. It says a labor union cannot be viewed as an enterprise organization and cannot be sanctioned because special employment workers have the status of a labor union stipulated by law.