"Please Halt the Yellow Envelope Act" Korea Employers Federation Chairman Sohn Kyung-shik Sends Letter to All Lawmakers

On August 12, ahead of the National Assembly plenary session, the Korea Employers Federation delivered a letter from Chairman Sohn Kyung-shik expressing management’s concerns about the Yellow Envelope Act (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act) to all 298 members of the National Assembly.

In the letter, Chairman Sohn stated, “There is significant concern among companies regarding the Yellow Envelope Act, which has recently been submitted to the plenary session of the National Assembly,” adding, “The bill draws principal contractors into the labor-management relationship of subcontractors and even makes business management decisions subject to labor disputes.”

He continued, “Given that the domestic industry is structured as a multi-tiered collaboration system by sector, including automobiles, shipbuilding, and construction, if the bill passes, strikes targeting principal contractors could occur constantly, leading to the collapse of the industrial ecosystem between principal and subcontractors. In a situation where employers have virtually no right to defend against strikes (such as allowing replacement workers or prohibiting workplace occupation), if restructuring or even investments in overseas production facilities could become subjects of labor disputes, it would be extremely difficult for our companies to operate normally amid fierce global competition.”

He also emphasized, “Recently, chambers of commerce in Europe and the United States have expressed the view that the Yellow Envelope Act could negatively affect future foreign investment.” The American Chamber of Commerce in Korea (AMCHAM) stated that if the bill is implemented, it could impact the willingness of American companies to invest in Korea in the future. The European Chamber of Commerce in Korea (ECCK) warned that if companies face criminal liability for refusing to negotiate in situations where the union counterpart is unclear, they may choose to withdraw from the Korean market.

Chairman Sohn said, “The Yellow Envelope Act represents a significant change that could bring tremendous confusion to our labor-management relations, yet there has been no dialogue or consultation between labor and management through social dialogue, which is deeply regrettable.” He earnestly requested, “Even now, for the sake of stable labor-management relations and the national economy, I strongly urge you to halt the amendment of the labor union law and, through sufficient consultation between labor and management, seek solutions that guarantee workers’ labor rights while also enabling our companies to maintain their competitiveness.”

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