Steel Industry Urges President to Veto the 'Yellow Envelope Act'

The steel industry has urged the President to exercise the right to request reconsideration (veto power) against the amendment to the Labor Union and Labor Relations Adjustment Act (Labor Union Act), commonly known as the 'Yellow Envelope Act.'

The Korea Iron & Steel Association issued a statement on the 23rd, saying, "We earnestly request the President to exercise the veto power on the amendment to the Labor Union Act, which was passed by the opposition-led National Assembly on the 9th."

It added, "The amendment expands the scope of employers, allowing subcontractor unions to demand collective bargaining with the primary contractors, and if the primary contractors refuse, they may face criminal liability. The amendment also limits claims for damages against illegal acts by unions, effectively removing countermeasures against illegal occupation or work disruption at workplaces."

On the 9th, the partial amendment to the Labor Union and Labor Relations Adjustment Act was passed at the plenary session held at the National Assembly. Photo by Hyunmin Kim kimhyun81@

The association expressed serious concerns that if the amendment to the Labor Union Act is promulgated, excessive bargaining demands and frequent strikes by unions will make normal business operations impossible in industrial sites. "Especially, small and medium-sized enterprises with relatively limited capacity to respond will suffer serious damage to their management," it said.

It further argued, "The impact of disruptions in steel production and supply will not be limited to steel companies but will weaken the foundation of key domestic industries such as construction, automobiles, shipbuilding, and machinery, thereby damaging the growth potential of our economy."

The association noted that the steel industry is currently facing difficulties due to supply chain crises, intensified global economic uncertainties, and stricter global carbon regulations, and "considering the steel industry's wholehearted efforts to overcome the crisis based on mutual cooperation between labor and management, we earnestly request the President to exercise veto power on the amendment to the Labor Union Act."

The Korea Iron & Steel Association includes 40 domestic steel companies as members, such as POSCO, Hyundai Steel, Dongkuk Steel, and SeAH Besteel.

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