[Reporter’s Notebook] Is Social Dialogue Impossible Even for the Yellow Envelope Act?

"Even during this presidential visit to the United States, won't business leaders accompany him and announce new investment packages? Yet, when it comes to the Yellow Envelope Act, the government dismisses the concerns of the business community as exaggerated... They are not listening to us at all."

A representative from the business sector who attended a recent rally against the amendment of the Trade Union Act, held in front of the main building of the National Assembly in Yeouido, expressed frustration at their voices not being heard. At the event, which gathered over 200 representatives from economic organizations, many lamented, "Would we have come all the way here in this sweltering heat if things weren't truly serious?"

What participants found most disappointing was that the government and the ruling party are thoroughly ignoring the voices of businesses. The business community has taken a step back, requesting revisions to the details of the amendment and asking for a one-year grace period before implementation. However, the ruling party shows no sign of accommodating these requests. Normally, laws are enforced six months after promulgation, so the business sector suggested extending this period by another six months to allow for social dialogue between labor and management and to minimize side effects. Nevertheless, the government and the ruling party are disregarding this proposal.

That does not mean companies have been passive regarding the current administration's economic agenda. When trade issues with the United States emerged after the government took office, businesses contributed by announcing new investments, helping to reduce tariffs on exports to the US. The large-scale shipbuilding cooperation project, which became a key strategic card in the final stages of negotiations, would have been difficult to propose without the support and ideas from companies. While some argue that "tariff reductions ultimately benefit the companies," the government also gained public approval, meaning it benefited from the efforts of the business sector.

If their requests for revision are not accepted, companies worry that they will be exposed to constant strike risks. If the definition of "employer" is broadened, thousands of subcontractors at the end of the manufacturing supply chain could directly demand negotiations with headquarters, and if "business management decisions" are included as subjects of labor disputes, companies might have to seek union approval for every investment. With the increased possibility of strikes, no foreign investor would risk large-scale capital in companies facing uncertain management prospects.

On the contrary, if companies decide to relocate overseas for survival in such an environment, who could stop them? The government may appeal to companies' patriotism for reasons such as job creation, export expansion, and economic revitalization, but the calculations for Korean businesses have become far too complex.

The Yellow Envelope Act is scheduled to be submitted to the National Assembly plenary session on August 23. It is understood that the ruling party is pushing for the law's passage early in its term to quickly address it while the administration still has momentum and to move on to the next phase. The business community has expressed willingness to accept some provisions of the law. Would it not be reasonable to postpone it temporarily for a year to allow for social dialogue? In a situation where trust has been broken, if another crisis arises, no one will be willing to lend a helping hand.

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