Business Community Regrets Passage of Yellow Envelope Act in Plenary Session, Calls for Supplementary Legislation

Business Community Expresses Regret Over Passage of Yellow Envelope Act
Calls for Supplementary Legislation to Clarify Employer Scope and Labor Dispute Definition
Requests Legislation of Employer Defense Rights in Line with Global Standards

The business community expressed regret over the passage of the Yellow Envelope Act amendment at the National Assembly plenary session on the morning of August 24 and called for supplementary legislation.

On the morning of August 24, the six major business organizations issued a statement expressing their regret over the passage of the Yellow Envelope Act in the National Assembly. The six organizations represent the business sector and include the Korea Employers Federation, Korea Chamber of Commerce and Industry, Federation of Korean Industries, Korea International Trade Association, Korea Federation of SMEs, and Korea Federation of Mid-sized Enterprises.

The business sector stated, "With the amendment to the Labor Union Act, the scope of employers and the concept of labor disputes have been expanded. However, it remains unclear who qualifies as an employer under the Labor Union Act and to what extent managerial decisions subject to labor disputes are included. As a result, legal disputes between labor and management are inevitable in the future."

They also emphasized the need for supplementary legislation. The business community stated, "The National Assembly should clarify the scope of employers and the concept of labor disputes through supplementary legislation to minimize confusion at industrial sites," adding, "The government must also prepare thorough supplementary measures through close communication with the business sector during the grace period."

Additionally, they requested, "We hope that the right of employers to defend themselves, such as allowing substitute labor in accordance with global standards as is guaranteed in major advanced countries, will also be legislated to ensure a balanced relationship between labor and management."

The Yellow Envelope Act is a bill that expands the scope of employers and the concept of labor disputes, and limits liability for damages arising from illegal industrial actions.

On the morning of August 24, the National Assembly plenary session passed the amendments to Articles 2 and 3 of the Labor Union Act (the Yellow Envelope Act). Although a filibuster was initiated at the request of the People Power Party after the bill was introduced the previous day, the Democratic Party, together with allied parties, ended the filibuster through a vote and passed the Yellow Envelope Act in the plenary session on the morning of August 24.

Power of the People party members are engaged in unlimited debate on the Yellow Envelope Act (Partial Amendment to the Labor Union and Labor Relations Adjustment Act) at the National Assembly plenary session in Yeouido, Seoul. Photo by Yonhap News

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