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The Labor & Employment Group of Lee & Ko successfully represented G-Institute in the High Court proceedings of a case in which an employee subject to a wage peak system challenged the validity of the system and claimed the difference in wages. The High Court overturned the lower court’s decision, which had deemed the wage peak system unlawful, and rendered a judgment upholding its legality.

Specifically, Lee & Ko’s Labor & Employment Group conducted a thorough review and analysis of the background leading to the introduction of the wage peak system, official correspondences exchanged between G-Institute and the labor union, and emails related to the union’s protest activities. Based on this analysis, Lee & Ko effectively argued and established the following:
(1) Despite G-Institute’s good-faith efforts to engage in negotiations for the introduction of the wage peak system, the labor union sent only blanket opposition letters without presenting any specific opinions or countermeasures, which constituted an abuse of its prior consent right under the collective bargaining agreement.
(2) G-Institute provided sufficient explanation through informational sessions and distributed explanatory materials that were easily understandable by employees, and did not unduly interfere in the process of obtaining employees’ consent; and
(3) The wage peak system in question was introduced in connection with an extension of the mandatory retirement age. Although some employees maintained their original retirement age, the degree of disadvantage imposed overall could not be deemed excessive.

This case is a key example that demonstrates Lee & Ko’s capabilities, particularly in successfully responding to allegations involving the abuse of a labor union’s prior consent rights under a collective bargaining agreement. It also serves as valuable guidance in practice for employers who face unilateral opposition from labor unions when attempting to implement new systems or who must navigate adverse changes to work rules through collective decision-making processes in the absence of a majority union.