Yellow Envelope Act Takes Effect on the 10th... Government to Conduct Intensive Inspections for First Three Months

Ministers' Meeting on the Amended Labor Union Act
"Institutionalizing Coexistence Negotiations Between Primary Contractors and Subcontractors"

In line with the enforcement of the so-called "Yellow Envelope Act" (the amended Trade Union and Labor Relations Adjustment Act, Articles 2 and 3) on March 10, the government has decided to designate the initial three months as a "focused inspection period."

On the morning of March 4, Kyuon-chul Koo, Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance, presided over a meeting of related ministers regarding the amended Trade Union Act at the Government Complex Seoul. The meeting was attended by ministers and vice ministers from 11 ministries, including the Ministry of Employment and Labor, the Ministry of Health and Welfare, the Ministry of Land, Infrastructure and Transport, the Ministry of Planning and Budget, and the Financial Services Commission, who reviewed the preparations and response plans.

Deputy Prime Minister Koo stated, "Labor-management relations are like being in the same boat, overcoming rough waves together for the Korean economy. Just as a boat cannot move forward unless the oars on both sides are in sync, our economy can advance steadily through adverse external conditions only when labor and management cooperate." He added, "The purpose of the amended Trade Union Act is to promote mutual respect and cooperation between labor and management, to establish a win-win order, and to support the development of the national economy."

Kyuon-chul Koo, Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance, is attending and speaking at the meeting of related ministers on the enforcement of the amended Trade Union Act held at the Government Complex Seoul in Jongno-gu, Seoul on March 4, 2026. Photo by Yongjun Cho

Minister of Employment and Labor Kim Younghoon clarified the legislative intent, saying, "Today's meeting is to conduct the final review of the government's preparations and the inter-ministerial joint response system to ensure the amended law can be stably implemented in the field. The aim is to institutionalize dialogue so that win-win negotiations can take place regarding actual working conditions determined in the original-contractor and subcontractor structure."

The government has long faced criticism that primary contractors substantially influence working conditions while evading bargaining responsibilities. With the enforcement of the Yellow Envelope Act, the government anticipates that responsible bargaining will now occur within an institutional framework.

Prior to the enforcement of the law, the government has operated field support teams to gather the opinions of labor and management organizations and has prepared interpretive guidelines and bargaining procedure manuals alongside revisions to the enforcement decree. Minister Kim stated, "We have prepared so that the intent of the law can be fully realized in the field. Based on this, we will establish consistent principles to enhance predictability at worksites."

However, he also noted, "This is an uncharted path for us," acknowledging the possibility of confusion at worksites. He pointed out that conflicts between labor and management could arise from differences in interpretation regarding bargaining procedures and scope.

Kim Younghoon, Minister of Employment and Labor, is attending and speaking at the meeting of relevant ministers on the enforcement of the amended Labor Union Act held at the Government Seoul Building in Jongno-gu, Seoul on March 4, 2026. Photo by Jo Yongjun

Concerns Over Weakened Bargaining Rights of Subcontractor Unions... Government to Strengthen Consistent Principles and Support

Minister Kim stated, "While there are concerns that the bargaining rights of subcontractor unions could be weakened, on the other hand, there are also worries that excessive increases in bargaining could lead to more disputes. The government will address these concerns by enhancing predictability at worksites through consistent principles and support, and will spare no effort to help build trust assets in labor-management relations."

In particular, the government made it clear that it would play a leading role in the public sector. Minister Kim said, "The public sector is an area where the government must play a substantial role. We will responsibly support the stable maintenance of labor-management relations by closely identifying the needs at worksites."

The government plans to quickly disseminate bargaining procedures and interpretive guidelines for primary contractor and subcontractor negotiations through dedicated support teams at local offices and to strengthen on-site guidance so that bargaining can proceed smoothly when employer status is recognized by the Labor Relations Commission.

Additionally, the government intends to support the settling of the system by providing judgment support for collective bargaining based on expert advice and by establishing win-win bargaining models. The government will proactively listen to voices from the field by meeting with both labor and management as needed, create exemplary models, and collaborate with related ministries to play a leading role in spreading best practices to the private sector.

Minister Kim emphasized, "As the saying goes, 'There is no establishment without trust,' there is no area where trust assets are more important than in labor-management relations. Rather than fostering mutual distrust and confrontation, I urge both labor and management to prioritize dialogue and negotiation for the common good."

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