Labor ministry uncovers illegal dispatch of 136 workers at Ansan industrial complex

The labor ministry said it had caught 18 labor-supply agencies and user companies illegally dispatching 136 workers to manufacturing production lines near the Ansan industrial complex, and ordered the manufacturers to hire the workers directly.

The ministry said the 10 labor-supply agencies sent the 136 workers to direct production work at eight manufacturers, an arrangement that is banned in principle unless there is a special reason such as a sudden surge in orders. Eight of the 10 suppliers had no license to dispatch workers.

The crackdown ran for about three months from June 22 and widened from an initial four unlicensed labor-supply agencies and two local manufacturers to 19 workplaces. Inspectors confirmed 67 violations of labor law across the 18 companies. The ministry also confirmed 162 million won ($120,590) in unpaid wages and allowances, including annual leave payments, and 27 cases of labor-relations law violations including overtime-limit breaches, and told the companies to correct them.

The ministry has referred the labor-supply agencies to prosecutors, saying it is investigating them for possible criminal charges. It also ordered the eight manufacturers to directly employ the 136 dispatched workers.

"Illegal-dispatch inspections have so far centered on prime contractors and subcontractors, but labor-supply agencies are not in a blind spot for enforcement," said Seo Myung-seok, the ministry's labor standards policy director. Seo added that the ministry will strengthen enforcement against illegal labor-supply agencies while supporting efforts to improve the employment structure in industrial complexes and root out chronic illegal dispatch.

The ministry said it views the illegal-dispatch problem in the region as stemming from structural factors such as chronic labor shortages and the use of outside workers. As part of that effort, it will run a three-month reporting period from Oct. 1 to Dec. 31 for illegal labor-supply agencies and carry out follow-up inspections based on the reports. It also plans a survey of workforce use at major industrial complexes and cooperation with regional labor-management-civil society councils and organizations supporting nonregular workers.