3. Do labor unions belong to the “enterprises” and “trading counterparts” referred to in the Fair Trade Act?
- According to Article 2 of the Fair Trade Act, “the term “enterprise” as used in this Act refers to any one of the following: 1) a company, 2) a sole proprietorship or partnership and 3) any other person or organization engaging in transactions through the provision of goods or services.” Hence, labor unions can only be considered doers of “transactions” under certain circumstances. If a labor union provides services for remuneration according to the Labor Union Act, it is an enterprise as stated in Article 2 of the Fair Trade Act and therefore subject to the Fair Trade Act.
- The term “trading counterpart” as used in Article 3 of the Fair Trade Act refers to any supplier or purchaser that engages in or concludes transactions with an enterprise. Therefore, a labor union may be considered to be a “trading counterpart” as used in Article 3 of the Fair Trade Act when it provides services for remuneration. However, there are many patterns of conduct of labor unions. Generalization on the applicability of the Fair Trade Act would be inappropriate. It depends on each individual case.
Relevant article(s) of law: Fair Trade Act, Article 2
Updated at：2016-02-22 10:57:06