Six Major Economic Organizations: "Yellow Envelope Act Should Maintain Employer Definition and Exclude Business Management Decisions from Labor Disputes"

Joint Statement at the National Assembly Calls for Revisions
Request for One-Year Grace Period to Gather Labor and Management Opinions

On August 18, the six major economic organizations urged the National Assembly to prepare a revised bill regarding the Yellow Envelope Act (the amendment to Articles 2 and 3 of the Trade Union Act) that would maintain the current legal definition of "employer" and exclude business management decisions from the scope of labor disputes.

On this day, the heads of the six economic organizations, including Sohn Kyungshik, Chairman of the Korea Employers Federation, held a press conference at the National Assembly with People Power Party lawmakers Kim Hyungdong and Cho Jiyeon to announce a joint statement titled "Joint Statement by Six Economic Organizations Urging Revision of the Trade Union Act Amendment." In the statement, the business community said, "In line with the intent of the Yellow Envelope Act, which aims to ease the burden of damage compensation for workers involved in illegal strikes, we have actively proposed to the National Assembly alternatives such as setting a cap on damage compensation through a separate enforcement decree and prohibiting wage garnishment. However, regarding the amendment to Article 2 of the Trade Union Act, which seeks to expand the definition of 'employer' and broaden the concept of labor disputes, we have appealed for the retention of the current law, as such changes could undermine the foundation of our manufacturing industry."

Regarding the Yellow Envelope Act, which is expected to be addressed in the National Assembly, they requested, "Please maintain the current legal definition of 'employer'." They expressed concern that if the bill is amended, "If dozens or even hundreds of subcontractor unions demand negotiations, the primary contractor will not be able to respond to each case, and industrial sites will fall into a state of extreme confusion."

In addition, regarding the expansion of the concept of labor disputes, they also demanded, "Business management decisions must be excluded." They argued, "The amendment designates business management decisions that affect working conditions as subject to labor disputes. If industrial restructuring and even overseas investment become subject to industrial action, it will be difficult for our companies to operate normally in the fiercely competitive global market."

They also requested a one-year grace period for implementation. They emphasized, "At the very least, we need to take a year to sufficiently gather opinions from both labor and management and prepare measures to minimize confusion at industrial sites."

After the press conference, Chairman Sohn told reporters, "There are concerns that if the Yellow Envelope Act passes, overseas investment by companies will increase further, while domestic investment will not proceed smoothly. Please do not drive companies abroad, but help create more jobs here at home."

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