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A survey revealed that most domestic companies view the so-called 'Yellow Envelope Act,' which limits employers' claims for damages caused by labor union strikes, negatively.
Photo by Korea Employers Federation

[Asia Economy Reporter Oh Gyumin] A survey revealed that most domestic companies view the so-called ‘Yellow Envelope Act,’ which limits employers' claims for damages caused by labor union strikes, negatively.

According to the Korea Employers Federation's survey on labor-management relations outlook for next year, conducted among 125 member companies, 96.3% of respondents said that if the pending amendments to Articles 2 and 3 of the Labor Union Act (Yellow Envelope Act) in the National Assembly are passed, it would have a negative impact on labor-management relations.

Specifically, companies anticipated that if the Yellow Envelope Act is enacted, there would be ▲an increase and normalization of illegal strike actions (34.4%) ▲heightened unrest in industrial sites due to increased struggles targeting primary contractors (31.2%) ▲prolonged negotiations and disputes caused by excessive expansion of negotiation subjects (30.7%).

On the other hand, very few companies viewed the passage of the Yellow Envelope Act positively. Only 2% of companies expected a reduction in labor-management conflicts related to damages and provisional seizures, and just 1.7% believed that the treatment of subcontractor and partner company workers would improve. No companies responded that labor-management dialogue would be revitalized due to the expansion of negotiation subjects.

Companies cited a "labor-friendly legislative environment" (46.5%) as the biggest factor destabilizing labor-management relations next year. Photo by Korea Employers Federation

Additionally, companies identified a ‘labor-friendly legislative environment’ (46.5%) as the biggest factor causing instability in labor-management relations next year. Companies also expressed concern about an increase in labor union struggles (28.7%).

Companies responded that a complete ban on workplace occupation (26.6%) is the most necessary measure to improve labor-management relations.
Photo by Korea Employers Federation

To improve labor-management relations, companies responded that a complete ban on workplace occupation (26.6%) is most necessary. This was followed by improvements in the unfair labor practice system (24.2%) and improvements in the dispatch system (22.6%).

Photo by Korea Employers Federation

Regarding major issues in wage and collective bargaining agreements (excluding wages and welfare) for next year, 36.9% of respondent companies selected wage system reform.

Jang Jungwoo, head of labor-management cooperation at the Korea Employers Federation, said, “While companies showed expectations for the government’s policy to establish the rule of law in industrial sites, they appear to be quite concerned about the labor-friendly legislative environment, such as attempts to amend Articles 2 and 3 of the Labor Union Act. As the government has made labor reform a key national agenda, we hope it will actively work toward establishing the rule of law in industrial sites and improving the labor market.”

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