Public enterprises established by the government or local governments are constantly undergoing restructuring in accordance with changes in the political, economic, and technological environments. Restructuring of public enterprises raises various labor law issues. Specifically, disputes mainly arise over whether individual working conditions, such as wages, as well as employment security, are maintained.
The main difference between public enterprise and private sector restructuring is that it is carried out not by the Commercial Act but by individual establishment laws, administrative guidelines, or ordinances. The succession of employment and working conditions according to these forms is determined differently.
First, if the law explicitly stipulates the succession of employment of former public enterprise employees, comprehensive succession is recognized. On the other hand, if there is no explicit provision, it is not. Second, in the case of administrative guidelines, it is determined based on whether or not the external and general legal binding force on public enterprises and employees of public enterprises is recognized. Third, it may be permissible to determine the succession of employment and working conditions through the public enterprise establishment ordinance.
Restructuring of public enterprises is a major policy issue that must be constantly considered as the economic and industrial environment changes. Accordingly, there are opinions that emphasize the need for collective bargaining with the government or local governments, and opinions that the issue needs to be resolved through legislation. More detailed research is required on the succession of labor relations in relation to the restructuring of public enterprises.