Junggyeonryeon Urges Suspension of 'Yellow Envelope Act' Legislation Over Concerns of Illegal Strike Proliferation

[Asia Economy Reporter Kwak Min-jae] Choi Jin-sik, chairman of the Korea Federation of Medium-sized Enterprises, urged the suspension of legislation on the ‘Yellow Envelope Act,’ which limits the employer's liability for damages caused by union strikes.

On the 14th, Chairman Choi met with Sohn Kyung-shik, chairman of the Korea Employers Federation, Kim Ki-moon, chairman of the Korea Federation of Small and Medium Business, and Jeon Hae-cheol, chairman of the National Assembly Environment and Labor Committee, stating, “The Yellow Envelope Act risks producing illegal and violent strikes that tie the hands and feet of companies by giving a free pass to radical union actions.”

Chairman Choi emphasized, “In a proper rule-of-law country, a signal that illegality can be tolerated through legislation must not be transmitted,” adding, “The common sense that wrongdoing entails responsibility is the same fundamental principle of the rule of law that illegal acts should be punished and damages imposed.”

After meeting with Chairman Jeon Hae-cheol, Chairman Choi said, “Ideological struggles pitting labor against capital are irresponsible, and extreme union activities are no different from cutting the Achilles' heel of our companies on the global stage,” and stressed, “As seen in the recent strike incidents involving subcontractor unions at Daewoo Shipbuilding & Marine Engineering and the Cargo Solidarity Union, excessive and illegal union activities that only cause inconvenience to the public can be resolved through persuasion and communication, but they should never be protected by laws like the Yellow Envelope Act.”

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