Lee Dong-geun, Vice Chairman of the Korea Employers Federation, "If the Yellow Envelope Act passes the National Assembly, we will request a veto"

Strengthening Strikes with Wings
Contradicting Civil and Constitutional Property Rights Protection
Concerns Over Harm to Socially Vulnerable Groups

[Asia Economy Reporter Kiho Sung] "The Yellow Envelope Act is a law that shakes the foundation of the nation’s capitalist system and constitution. If this law is passed in the National Assembly, where the opposition holds an absolute majority, the Korea Employers Federation will recommend that the president exercise the veto power."

Lee Dong-geun, Vice Chairman of the Korea Employers Federation, voiced strong opposition to the ‘Amendment to the Trade Union and Labor Relations Adjustment Act (Yellow Envelope Act),’ which prevents claims for damages even if labor unions engage in illegal strikes.

In an interview with Asia Economy on the 18th at the Korea Employers Federation building in Yeouido, Seoul, Lee said, "Following the previous administration’s labor-friendly policy direction, the balance of power between labor and management has been broken. If the Yellow Envelope Act is passed, it will further encourage militant strikes, and in such cases, not only union members but also non-union workers will suffer."

The Yellow Envelope Act essentially prohibits claims for damages caused by illegal strikes by labor unions. The opposition parties, the Democratic Party of Korea and the Justice Party, have adopted the passage of the Yellow Envelope Act as their party policy and are accelerating legislation in this regular session of the National Assembly.

Lee conveyed that concerns from the business community and companies regarding the Yellow Envelope Act are serious. He said, "While the Serious Accident Punishment Act is unreasonable in that it punishes business owners or management officials in the event of fatal accidents caused by disasters, the legislative intent of ‘reducing accidents’ was understandable. However, the Yellow Envelope Act is a law that cannot be understood from the perspectives of companies, workers, or the nation," he argued.

Lee criticized the Yellow Envelope Act for strongly infringing on property rights guaranteed by the constitution. He claimed it directly contradicts Article 23 of the Constitution, which guarantees the property rights of all citizens, and Article 750 of the Civil Act, which stipulates that those who cause damage to others through illegal acts are liable for compensation. He said, "The Yellow Envelope Act goes beyond labor issues; it violates the constitution and the rule of law and is a law that denies capitalism."

He also expressed concern that the passage of the bill would harm socially vulnerable groups. Lee said, "If the bill passes, unions will take more militant actions because they will not suffer any losses from strikes. Non-striking union members or workers not affiliated with unions will inevitably be forced to suffer damages along with the company due to union strikes."

He also revealed plans to recommend that President Yoon Seok-yeol exercise his veto power if the bill is passed. The ruling party holds a similar stance. Kwon Seong-dong, floor leader of the People Power Party, stated at a floor strategy meeting, "Currently, the Democratic Party, relying on its majority seats, is running various standing committees arbitrarily and rushing through bills without cooperation or coexistence between the ruling and opposition parties. We will recommend that the president exercise the veto power."

Regarding the recent controversy over employment issues between shipbuilding contractors and subcontractors, Lee pointed out that the government must respond with clear principles. He said, "I believe that the failure to establish the rule of law in industrial sites is due to a combination of militant labor movements that seek to achieve their goals through illegal means and the government’s lukewarm response to illegal acts. To establish the rule of law in industrial sites, the government’s principled response, such as immediate public authority intervention to resolve illegal situations when illegal acts occur, must become a customary practice," he emphasized.

Ultimately, he advised that improving the system and enhancing industrial competitiveness are necessary to solve the problem. Lee said, "Legal and institutional improvements, such as a complete ban on workplace occupation during strikes in line with global standards, must be made promptly. Additionally, the government should actively strengthen shipbuilding competitiveness by supporting the establishment of training centers for skilled workers in the shipbuilding industry and producing new skilled workers to resolve manpower shortages, which are critical to winning orders," he stressed.

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