Economic Sector: "Stable Labor-Management Relations Require Support from the National Assembly and Government"

Economic Six Organizations Vice Chairpersons Adopt Statement on Labor-Management Stability and Resolution of Management Uncertainty

The vice chairpersons of six economic organizations issued a statement on the 18th opposing the proposed amendments to Articles 2 and 3 of the Labor Union Act. They decided to request the government and the National Assembly to stabilize labor-management relations and eliminate uncertainties in the process of managing companies.

The full-time vice chairpersons of the Korea Employers Federation, the Korea Chamber of Commerce and Industry, the Korea International Trade Association, the Korea Business Association, the Korea Federation of Small and Medium Business, and the Korea Association of Mid-sized Enterprises held a meeting that day and adopted a statement containing these points. They asked for help in removing obstacles that hinder companies from freely investing amid challenging domestic and international economic conditions.

Last June, during the plenary session of the National Assembly, members of the People Power Party were leaving the debate on whether to submit the "Yellow Envelope Act" (Amendment to the Labor Union and Labor Relations Adjustment Act). Photo by Kim Hyun-min kimhyun81@

The six economic organizations stated, "The proposed amendments to Articles 2 and 3 of the Labor Union Act indiscriminately expand the concept of 'user,' which will collapse the industrial ecosystem between primary and subcontractors and severely degrade industrial competitiveness," and insisted, "The legislative push for these amendments must be stopped." They added, "Since the manufacturing sector, the foundation of our economy, is composed of multi-tiered collaboration systems by industry such as automobile, shipbuilding, and construction, if the amendments pass and continuous labor disputes occur against primary contractors, the industrial ecosystem between primary and subcontractors will collapse, and the foundation for quality jobs will be destroyed."

The so-called Yellow Envelope Act, a nickname for the Labor Union Act amendments, includes expanding the scope of users and limiting claims for damages related to labor disputes. It allows subcontracted workers to demand negotiations if the condition that they are effectively controlled in terms of working conditions is met. Regarding the limitation on damage claims, it includes provisions to determine the scope of responsibility by considering the fault and contribution of each liable party. Due to severe disagreements between ruling and opposition parties, if passed, even the presidential veto is being discussed.

The full-time vice chairmen of six economic organizations held a meeting at the Korea Chamber of Commerce and Industry on the 18th and adopted the "Economic Sector's Position for Labor-Management Stability and Resolution of Business Management Uncertainty."

The economic organizations argued that "Even now, industrial sites frequently experience illegal acts such as violence and destruction by militant unions and workplace occupations. If the concept of labor disputes is expanded as per the amendments and liability for damages due to illegal strikes is effectively limited, it will promote 'strike omnipotence' at industrial sites and illegal strikes will become rampant," adding, "This will deal a severe blow not only to domestic companies' investments but also to foreign direct investment."

They emphasized that the Serious Accident Punishment Act increases uncertainty in corporate management and therefore needs to be amended. The economic organizations stated, "Although the Serious Accident Punishment Act is approaching its two-year implementation mark, it has not significantly reduced fatal accidents so far, while ambiguous regulations and excessive punishments have only increased confusion at workplaces and burdens on companies," and warned, "Small-scale companies with fewer than 50 employees, which will be subject to the law starting next year, are still inadequately prepared for compliance, and if an accident occurs, it will be difficult to avoid criminal punishment, threatening their very existence."

Representatives of small and medium-sized enterprise organizations, including the Korea Federation of SMEs and the Korea Specialty Contractors Association, held a press conference on August 31 at the Korea Federation of SMEs to urge the extension of the grace period for applying the Serious Accidents Punishment Act to workplaces with fewer than 50 employees. Jung Yun-mo, Vice Chairman of the Korea Federation of SMEs, and representatives of business organizations are shouting slogans. Photo by Heo Young-han younghan@

Accordingly, they requested a two-year extension of the application period. They called for clarifying and specifying the scope and duties of responsible managers and adjusting the level of criminal punishment. The six economic organizations emphasized, "Recently, improvements in unreasonable practices at workplaces have been achieved through labor-management rule of law," and stressed, "The system should be improved to balance power between labor and management by prohibiting workplace occupations, allowing substitute labor, and establishing regulations to sanction unfair labor practices by unions."

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