1.

Key Changes

As discussed below, the most notable feature of the Revised Draft is the clear distinction between the general criteria (Article 14-11, Paragraph 3) and special criteria that must be prioritized in the context of principal-subcontractor bargaining (Article 14-11, Paragraph 4).
 

(1)

Separation of Bargaining Units within a Principal Company

Regarding the separation of bargaining units among unions within a principal company, the common criteria will continue to apply. While the Revised Draft further clarifies the existing standards (i.e., differences in working conditions, employment forms, and bargaining practices) and introduces a new catch-all provision for “other grounds equivalent to the above three criteria,” the practical application of these rules is expected to remain substantially similar.
 

(2)

Separation of Bargaining Units for Principal-Subcontractor Bargaining

Notably, through the newly added Paragraph 4, the Revised Draft mandates that when a subcontractor union demands collective bargaining with a principal company, “interests between trade unions” must be considered prior to the common criteria.
 

• Original Approach: Under the Original Draft, the “interests between workers” were merely one factor to be weighed alongside working conditions, employment forms, and bargaining practices, with no specific priority assigned to any single factor.

• Revised Approach: The Revised Draft adds a dedicated provision for principal-subcontractor bargaining contexts. In these cases, “interests between trade unions and the potential for inter-union conflict” must be considered before applying the common criteria.
   

 Such a shift suggests that a conflict of interest—such as differing affiliations with upper-level trade union—may by itself serve as valid grounds for separating a bargaining unit. Notably, the Revised Draft explicitly limits the application of special criteria specifically to principal-subcontractor bargaining scenarios to prevent any confusion or spillover effects within the principal company’s own internal labor relations.
 

2.

Implications

The Revised Draft maintains the fundamental principle of a single bargaining channel, but effectively broadens the pathway for subcontractor unions to bargain independently from the principal company union by prioritizing the separation decision on “interests between trade unions.” This enables bargaining unit separation not only between principal and subcontractor unions, but potentially among different subcontractor unions themselves.

For companies, this development presents a tangible operational risk, as the likelihood that subcontractor unions will secure independent bargaining units based on inter-union interests has significantly increased. Companies must therefore prepare for a more fragmented bargaining landscape. Additionally, the introduction of the catch-all provision (“other grounds equivalent to...”) in the separation criteria adds a layer of uncertainty, as companies need to closely monitor how the Labor Relations Commission will interpret and apply this provision in future adjudications.