The amendment to the Trade Union Act, which passed the Environment and Labor Committee of the National Assembly, includes only a 'six-month' grace period. It is expected that the actual implementation of this law will take less time than anticipated after it is enacted and promulgated.
On the 29th, the Ministry of Employment and Labor explained the key contents of the alternative to the Yellow Envelope Law that passed the National Assembly's Environment and Labor Committee the day before during a pre-briefing. Initially, this amendment passed the National Assembly twice during the previous Yoon Suk-yeol administration but was scrapped due to the president's veto. However, under the current administration, the push for the law is gaining momentum due to the will of President Lee Jae-myung and Minister Kim Young-hoon. The Democratic Party of Korea aims to pass it in the upcoming plenary session on the 4th of next month.
◇ 'Primary contractors also considered employers; if unions face financial difficulties, they may be eligible for reduction in damages'
In detail, the definition of 'employer' (Trade Union Act Article 2) has been expanded. If a primary contractor has the position to substantially and specifically intervene in the working conditions of a subcontractor, they will also be considered an employer within that scope. The Ministry of Employment and Labor plans to prepare specific guidelines for 'employer status determination criteria' and 'contractor-subcontractor negotiation procedures' based on existing precedents of the Labor Commission and courts before the law goes into effect.
The scope of labor disputes (Trade Union Act Article 2 Item 5) has also been expanded. A 'state of dispute arising from disagreement regarding the determination of working conditions' now includes 'disagreement regarding business decisions that affect working conditions' according to the current law. Consequently, situations such as layoffs, business consolidations, and restructuring can also be subjects of disputes.
It has also been made possible for disputes to arise over 'clear violations of collective agreements by employers.' A Ministry of Employment and Labor official noted, 'This means that labor disputes will be permitted when an employer clearly violates a portion of the agreement that was promised to be fulfilled by both labor and management.'
The 'exemption' clause (Trade Union Act Article 3) aimed at reducing the liability for damages suffered by workers due to union activities has also been strengthened. If damages stem from legitimate collective bargaining or dispute activities under the Trade Union Act, such as campaigns or picketing, employers will not be able to claim compensation. It is also specified that unions will not be liable for damages related to their inevitable 'legitimate defensive' actions against illegal acts by employers.
In cases where liability for damages caused by union activities is recognized, the responsibility will be determined on an individual basis according to certain conditions, such as ▲ position and role in the union ▲ circumstances and extent of participation in disputes, and it will be possible to request reductions based on financial situations such as 'economic status', 'support obligations', and 'minimum living expenses.'
The government plans to implement the law within six months after it is promulgated. This period has been shortened to half compared to earlier expectations of a one-year grace period discussed during the government-party negotiations. A government official stated, 'While the preparations required remain the same, we want to push ahead tightly (with urgency).'
◇ Minister Kim Young-hoon: 'A law to promote dialogue, a law for coexistence, and a law for genuine growth'
Minister Kim Young-hoon evaluated the amendment to the Trade Union Act during a briefing held at the Government Seoul Office, saying, 'The amendment opens the path for dialogue, lays the foundation for coexistence, and prepares for future growth.'
In particular, regarding the ability for negotiations between primary contractors and subcontractors, he stated, 'This intends to ensure that employers with substantial authority will also bear corresponding responsibilities,' adding, 'By opening the door for legitimate discussions on decisions that significantly affect working conditions, we expect that autonomous dialogue between labor and management will be further promoted.'
Minister Kim also requested the business community to 'take responsibility so that this can be a turning point in establishing a new labor-management relationship,' and urged the labor community to 'recognize that this amendment brings issues that were previously difficult for labor and management to even discuss into a institutional framework, and we hope to see a culture of dialogue and compromise based on autonomy and responsibility established according to the spirit of the law.'
Minister Kim added, 'The government will sincerely cooperate to ensure that sufficient discussions can continue in the National Assembly during the remaining legislative process.'