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ENFORCEMENT DECREE OF THE ACT ON THE PROMOTION OF WORKER PARTICIPATION AND COOPERATION

ENFORCEMENT DECREE OF THE ACT ON THE PROMOTION OF WORKER PARTICIPATION AND COOPERATION

Presidential Decree No. 15323, March 27, 1997

Amended by Presidential Decree No. 16776, Apr. 1, 2000 Presidential Decree No. 20139, Jun. 29, 2007

Wholly amended by Presidential Decree No. 20804, Jun. 22, 2008 Article 1 (Purpose)

The purpose of this Decree is to prescribe the matters delegated by the Act on the Promotion of Worker Participation and Cooperation and matters necessary for the enforcement thereof.

Article 2 (Exemption from Establishment)

In applying the provision of Article 4 (1) of the Act on the Promotion of Worker Participation and Cooperation (hereinafter referred to as "the Act"), where the total number of workers engaged in one business is not less than thirty persons, even if the workers in question are dispersed in different regions, a labor-management council (hereinafter referred to as "council") prescribed in subparagraph 1 of Article 3 of the Act shall be established at the principal office thereof.

Article 3 (Election of Workers' Members)

(1) Workers' members of a business or workplace where a trade union consisting of a majority of workers is not organized as prescribed in Article 6 (2) and (4) of the Act shall be elected by workers by direct, secret and unsigned ballot : Provided that, if deemed unavoidable due to any special characteristics of a business or workplace, workers electing workers' members (hereinafter referred to as the "workers' member voters") may be elected in the first place in a number proportional to the number of workers of each department, and then the workers' members may be elected by a majority of the workers' member voters by direct, secret and unsigned ballot.

(2) A person who intends to run for a workers' member shall be a worker at the business or workplace concerned, and - 2 -

shall obtain recommendation from ten or more workers at the said business or workplace.

Article 4 (Substitute Member)

When a vacancy arises for a workers' member, a

substitute member shall be appointed or elected within 30 days, and in case of a business or workplace without a trade union consisting of a majority of workers, a worker who wins the second most votes among those who failed to be elected in an election of workers' members may become the workers' member.

Article 5 (Bylaws of Council)

(1) The bylaws of a council (hereinafter referred to as "the bylaws of a council") under Article 18 of the Act shall contain matters described in any of the following subparagraphs:

1. Number of council members;

2. Matters relating to the procedures for the election of workerßÓs members and the registration of candidates;

3. Matters relating to the qualifications for employersßÓ members;

4. Matters relating to the hours considered as hours worked by council members under Article 9 (3) of the Act;

5. The calling of meetings, sessions and other matters relating to the operation of the council;

6. Matters relating to the method of and procedures for voluntary arbitration under Article 25 of the Act; and

7. Matters relating to the number of grievance handling members and the handling of grievances

(2) If the bylaws of a council are established or amended, they shall be passed by the council.

Article 6 (Keeping of Minutes)

The meeting minutes prescribed in Article 19 of the Act shall be signed or sealed by all members present. Article 7 (Procedure for Grievance Handling)

If a worker has a grievance, he/she may report it to a grievance handling member prescribed in Article 26 of the Act verbally or in writing. In this case, the grievance handling member who receives the grievance shall handle it without delay.

Article 8 (Status and Treatment of Grievance Handling Members) (1) A grievance handling member shall serve on a non- - 3 -

standing, no-remuneration basis.

(2) An employer shall not take any action to the detriment of the grievance handling member in relation to the performance of his/her duties.

(3) The hours spent by a grievance handling member to consult about the handling of grievances or to handle grievances shall be regarded as hours worked.

Article 9 (Keeping of Ledger)

A grievance handling member shall draw up and keep a ledger relating to the receipt and handling of grievances and preserve it for one year.

Article 10 (Delegation of Authority)

Pursuant to Article 29 of the Act, the Minister of Labor shall delegate the authority described in any of the following subparagraphs to the head of a local labor office:

1. Issuance of correction orders under Article 11 of the Act;

2. Receipt of the bylaws of a council under Article 18 of the Act; and

3. Imposition and collection of a fine for negligence under Article 33 of the Act.

Addenda Article 1 (Enforcement Date)

This Decree shall enter into force on June 22, 2008. Article 3 (Relationship to Other Laws)

References to the provisions of the previous Presidential Decree of the Act on the Promotion of Worker

Participation and Cooperation in other Acts or subordinate statues at the time this Decree enters into force shall be deemed as references to the corresponding provisions of this Decree, if any, in lieu of the previous provisions.