On the 14th, the commissioners of the National Assembly's Environment and Labor Committee, affiliated with the Democratic Party of Korea, met with representatives of the business community to hear concerns about the proposed amendments to Articles 2 and 3 of the Trade Union Act (commonly known as the 'Yellow Envelope Law'). With the Democratic Party's leadership indicating plans to push for related legislation during the July extraordinary session, this move is seen as an attempt to appease the business sector by reflecting their voices.

On the 14th, Democratic Party of Korea members of the Environment and Labor Committee listen to KEF Chairman Son Kyung-sik's announcement of the economic organizations' stance regarding the amendment of the labor law at a labor policy meeting held at the Korea Enterprises Federation in Mapo-gu, Seoul. /Courtesy of Yonhap News Agency

Chairperson Ahn Ho-young of the National Assembly's Environment and Labor Committee and the ruling party's secretary Kim Joo-young, along with other Democratic Party of Korea commissioners, held a meeting at the Seoul KEF headquarters to focus on the business community and the 'Yellow Envelope Law.' Representatives from six major economic groups were present, including Korea Enterprises Federation Chairman Sohn Kyung-sik, the KORCHAM, KBIZ, the Federation of Korean Industries, the Korea International Trade Association, and the Korea Association of Small and Medium Enterprises.

The business sector requested a cautious approach to legislation, mentioning that amid uncertainties in the global economy and sluggish domestic demand, the implementation of the amendments to Articles 2 and 3 of the Trade Union Act could lead to frequent strikes by unions, resulting in significant chaos in the industrial field.

Korea Enterprises Federation Chairman Sohn Kyung-sik emphasized, "It is true that there are concerns about some labor policies being discussed recently. In particular, there is great concern among corporations regarding the proposed amendments to Articles 2 and 3 of the Trade Union Act."

He also pointed out the following regarding the amendment proposed by the ruling party: ▲ Expanding the definition of 'user' to an abstract and ambiguous concept would mean that when subcontractor unions demand negotiations, primary companies cannot respond to each one individually; ▲ Primary companies concerned about strikes might transfer their operations abroad; ▲ It is not easy for users to prove illegal acts of individual union members; and ▲ If corporations' claim rights are restricted, illegal activities in industrial fields could spread significantly.

He continued, "The amendment of the Trade Union Act is not just a matter of simple legal revision, but a significant change that could cause enormous turmoil in labor-management relations," adding, "I hope sufficient discussions will take place starting from this meeting through dialogue."

In response, the Democratic Party of Korea stated that it would sufficiently reflect the opinions from the field in the legislative process.

Chairperson Ahn stated, "The proposed amendments to Articles 2 and 3 of the Trade Union Act have been driven by the intent to strengthen the protection of workers' basic rights," noting, "It is included as one of the governmental tasks of the Lee Jae-myung administration, so there is also a high level of public interest."

He added, "However, legislation is a complex task that must consider the coherence of the legal system along with the operational feasibility in the field and its impact on corporate activities," stating that "It is the responsibility of the Environment and Labor Committee to prepare reasonable and swift alternatives that all parties—business, labor, and the public—can accept."

He further stated, "We will continue to expand social consensus and create win-win solutions through ongoing communication and consultation."

Democratic Party of Korea Secretary Kim Joo-young met with reporters after about an hour-long closed-door meeting, saying, "The business community was particularly concerned about the concept of 'user' in Articles 2 and 3 of the Trade Union Act," adding, "We found few ways to improve (subcontracting issues)."

He continued, "There has been a long-standing demand for amendments to the Trade Union Act to break the structure like subcontracting. Therefore, it was adopted as a presidential pledge, and the public agreed with that pledge. Now we will consider how to create the law and proceed with the legislation."

He mentioned regarding the timing of the Yellow Envelope Law's legislation, "Within the party, this bill is somewhat organized, and it was processed in the 21st National Assembly but faced a veto. Therefore, it seems that there isn't much time left now," indicating that they will push for legislation as planned in the July extraordinary session.

The Yellow Envelope Law focuses on expanding the primary's employer responsibility for subcontracted workers and limiting damages for legitimate disputes. The business community sees the Yellow Envelope Law as fundamentally shaking the primary-subcontractor structure and the on-site response system. Conversely, labor groups such as the Korean Confederation of Trade Unions (KCTU) argue that the amendments are "the minimum conditions for realizing labor rights," indicating plans to hold a general strike starting from the 16th to urge for the legislation.

※ This article has been translated by AI. Share your feedback here.