Business circles launch all-out battle to block the 'Yellow Envelope Act'... Industry groups appeal for veto use

The business community has launched an all-out effort to block the amendment to the Labor Union Act (commonly known as the Yellow Envelope Act). Major industry organizations, including the Korea Employers Federation, gathered to make a final appeal to the President to exercise the veto power.

On the morning of the 15th, the Korea Employers Federation and various industry organizations held a joint press conference at the Korea Employers Federation building in Mapo-gu, Seoul, condemning the deterioration of the Labor Union Act and urging the exercise of veto power. The statement was supported by 49 organizations, including major representative industry groups driving Korea's industries such as semiconductors, automobiles, displays, batteries, shipbuilding and offshore plants, petroleum, steel, construction, textiles, as well as regional Korea Employers Federations.

The business community defined the amendment as a "malicious law that will destroy our companies and economy." The business sector criticized, "The opposition party ignored the desperate cries from the industrial field and passed the amendment, endangering the national economy with political calculations."

Representatives of major industry organizations, including the Korea Employers Federation, held a joint press conference on the 15th at the Federation Hall in Mapo-gu, Seoul, appealing for the president to exercise the veto power over the amendment to the Labor Union Act.
[Photo by Korea Employers Federation]

Furthermore, the business community argued that the amendment expands the scope of employers, which will collapse the industrial ecosystem between primary and subcontractors, putting domestic small and medium-sized partner companies at risk of bankruptcy. They explained that key industries in Korea, such as automobiles and shipbuilding, have thousands of partner companies, and if the primary contractor is recognized as the employer, the industrial sites will suffer strikes throughout the year.

The business sector pointed out, "Ultimately, primary contractor companies will have no choice but to cut ties with domestic companies or relocate overseas," adding, "As domestic small and medium partner companies go bankrupt, the hollowing out of domestic industries will become a reality, and workers at partner companies will lose their jobs."

Additionally, the business community highlighted that the amendment also expands the concept of labor disputes and limits liability for damages. They claim that even if illegal acts such as violence by militant unions and workplace occupations frequently occur during strikes, the business sector will have no means to respond.

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