The Supreme Court on Thursday reversed a lower court ruling that held laborers liable for damages incurred during an illegal strike.
In its decision, the nine-member bench reversed and remanded a lower court ruling in favor of Hyundai Motor in a damages suit filed against four members affiliated with the Korean Metal Workers' Union.
The top court said varying degrees of union participation by each defendant justify a calculation of liability based on union status, role and participation in the labor dispute.
The court said it is realistically difficult for a member to disobey union orders to participate in collective action that has been decided by a majority vote, and ignoring such a reality within organized labor could weaken the rights to organization and group action.
The defendants have been accused of inflicting damage on the automaker in November and December 2010 after partially occupying its Ulsan plant, which suspended operations for 278 hours.
The first and appeals courts both found the defendants liable, ordering them to pay two billion won, or over one-point-five million U.S. dollars, in compensation.
The latest decision comes as opposition parties are pushing to pass revisions to the labor union law that would deter companies from seeking damages from unions for losses incurred during strikes.