Expressing Business Community Concerns in a Day... Opposition Party Officially Pushes Forward 'Noranbongtu Law'

Regarding "Property Rights Infringement, Unconstitutional Elements Present"

Eunju Lee, Emergency Committee Chair of the Justice Party, holds a press conference on the 15th at the National Assembly Communication Hall to announce the proposal of the "Yellow Envelope Act" (Amendment to the Labor Union Act). Photo by Dongju Yoon doso7@

[Asia Economy Reporter Koo Chae-eun] Despite concerns from the business community, opposition parties including the Democratic Party of Korea and the Justice Party have officially decided to push forward with the "Yellow Envelope Act." The "Yellow Envelope Act" is a legislative amendment that seeks to restrict claims for damages or provisional seizure even in cases of illegal labor union strikes, which the business sector opposes, arguing that it violates market order.

On the 15th, the Justice Party held a press conference to announce the official adoption of the party's stance on the Yellow Envelope Act. Previously, 56 lawmakers, including Justice Party Emergency Committee Chair Lee Eun-joo and members of the Democratic Party, were listed as sponsors. The core of the bill is to expand the scope of restrictions on companies' claims for damages against striking workers or labor unions. To this end, it prohibits claims for damages except for direct damages caused by violence or destruction and broadens the scope to include special employment workers within the range of workers and labor disputes. While limiting the targets of damage claims, the exceptions have been expanded.

The Democratic Party also clearly expressed its intention to pursue legislation on the same day. Oh Young-hwan, the party's floor spokesperson, said in a briefing, "There is no change in our determination to push forward with key legislative tasks," adding, "We are in the process of preparing legislation by reviewing overseas legislative precedents for the protection of legitimate labor rights."

This came just one day after the business community expressed concerns to the National Assembly. On the 14th, Sohn Kyung-shik, Chairman of the Korea Employers Federation, Choi Jin-sik, Chairman of the Korea Federation of SMEs, and Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business, met with Jeon Hae-cheol, Chairman of the National Assembly Environment and Labor Committee, and conveyed their opinion that the "Yellow Envelope Act" is not about legitimate strikes but exempts even illegal strikes, excessively infringing on the constitutional property rights of employers, which is against the spirit of the Constitution.

The Yellow Envelope Act consists of six proposed amendments to the Labor Union Act, which are currently pending. From the Democratic Party side, lawmakers Kang Byung-won, Lim Jong-sung, Lee Soo-jin (proportional representative), Kang Min-jung, and Yang Kyung-sook have each introduced bills, while from the Justice Party, lawmaker Lee Eun-joo has done so. All proposals commonly include "restrictions on claims for damages and provisional seizure related to union activities," but differ in aspects such as claims for damage reduction (Kang Byung-won’s bill), revision of the definition of labor disputes (Lim Jong-sung’s bill), exemption from criminal liability when no violent acts are involved (Lee Soo-jin’s bill), expansion of the scope of employers subject to union negotiations (Kang Min-jung’s bill), and establishment of damage claim limits (Yang Kyung-sook’s bill).

If the major opposition parties, the Democratic Party and the Justice Party, push the bill through with their combined seats, the ruling party has few means to block it. Currently, the National Assembly Environment and Labor Committee has 10 opposition members out of 16. The committee chairperson and the chairperson of the Employment and Labor Bill Review Subcommittee, which precedes committee approval, are both held by the Democratic Party.

Im E-ja, a member of the ruling People Power Party and the party’s secretary for the Environment and Labor Committee, expressed a negative stance in a phone interview with Asia Economy, saying, "The current bills contain unconstitutional elements that infringe on constitutionally guaranteed property rights, so we need to approach them cautiously."

This content was produced with the assistance of AI translation services.