SME Industry: "'Yellow Envelope Act' Passed by National Assembly... Threat to Survival of Small and Medium Enterprises"

The small and medium-sized enterprises (SME) sector expressed concerns that the passage of the amendment to the 'Labor Union and Labor Relations Adjustment Act' (Yellow Envelope Act) in the National Assembly plenary session will lead to the normalization of strikes, causing industrial sites to shrink.

The Korea Federation of SMEs issued a statement on the 5th, expressing "deep regret over the forced passage of the amendment to the Labor Union Act despite opposition and appeals from the business community."

The Federation stated, "Since the last National Assembly session, the SME sector has appealed that if the amendment to the Labor Union Act, which expands the scope and targets of strikes and effectively blocks claims for damages, is passed, indiscriminate strikes will become more widespread in industrial sites, causing enormous damage to companies and the national economy."

They added, "Ignoring these desperate appeals, the amendment that encourages illegal strikes was passed. With the passage of the Labor Union Act amendment, already confrontational labor-management relations will collapse, and the normalization of strikes will cause industrial sites to shrink."

The Federation emphasized, "Frequent production stoppages due to strikes will worsen the management conditions of SMEs, and in the long term, the expansion of overseas clients by large original contractors will lead to reduced and severed transactions, threatening the survival of SMEs. Ultimately, this will not only lower national competitiveness but also result in job losses."

They further added, "Once again, we urge the President to exercise the right to request reconsideration to protect the national economy and jobs."

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