Minister of Labor Kim Younghoon: "Aware of Concerns Over Single Bargaining Channel in Yellow Envelope Act"

On the 25th, Minister of Employment and Labor Kim Younghoon stated, "Articles 2 and 3 of the Trade Union Act (Yellow Envelope Act) are intended to implement a 'real growth law' that aims to close the gap between primary contractors and subcontractors and create a structure for mutual growth."

Yonhap News Agency

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During a press briefing that morning, Minister Kim explained, "The purpose of amending the Trade Union Act is to ensure the practical collective bargaining rights of subcontracted workers." He continued, "I am aware that both management and labor have concerns about the single bargaining channel system. Management does not want labor-management relations to become judicialized, while labor is concerned that the bargaining rights of subcontracted workers could be diminished." He acknowledged labor's concerns, saying, "There have been cases in the past where the single bargaining channel system has been abused, so such suspicions are understandable."

According to the National Assembly and labor circles, the Ministry of Employment and Labor held a briefing for labor organizations on the 19th regarding the 'Amendments to the Enforcement Decree and Enforcement Rules of Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act.' In preparing these amendments, the Ministry determined that the current single bargaining channel rule should also apply to 'external employers' (primary contractors) outside the contract. Therefore, if a subcontractor union requests bargaining with the primary contractor, the single bargaining channel should, in principle, be implemented at the primary contractor level. However, the Ministry also stated that the bargaining unit separation system should be used to maximize the autonomy of subcontractor unions in collective bargaining. If the bargaining units are separated, the single bargaining channel procedure should be conducted separately for each unit.

Despite concerns from labor organizations, Minister Kim stressed that the government's direction is clear. He said, "The result of 100 years of wisdom from the International Labour Organization (ILO) is 'autonomous industrial relations.' We should move toward a structure of autonomous bargaining, not government-led paternalism or legalistic labor-management relations resolved through judicial intervention." He emphasized, "We are preparing to improve the single bargaining channel system in a way that minimizes the possibility of judicialization of labor-management relations and allows for industry-level bargaining to occur naturally."

Regarding the recent collapse at the Ulsan thermal power plant, Minister Kim said, "I am deeply sorry to the public and have no excuse before the President," adding, "This incident starkly revealed the 'industrial safety gap' during the energy transition process." He continued, "Witnessing this accident made me realize the urgent need to include industrial safety as a core part of a just transition. Although industrial accidents are frequent in the construction industry, demolition is five times more dangerous than new construction. We must correct the paradoxical situation in which industrial safety regulations are exceptionally applied to suspended and abandoned structures."

On the record-high number of young people classified as 'not in work' and the employment rate declining for 18 consecutive months, he began by saying, "The youth employment issue is extremely difficult." He pointed to several causes: a corporate preference for experienced workers due to rapid technological change; job replacement by AI and robots; and the hollowing out of regions and decline of traditional industries. Minister Kim said, "As the President has stated, the whole country must come together for every good job," and added, "The Ministry of Employment and Labor will faithfully implement the 'First Step Youth Employment Guarantee Program' and will reach out first to young people who are not in work."

Regarding the debate on extending the retirement age, he argued that it should be resolved through solidarity, not generational conflict. Minister Kim said, "Extending the retirement age is the path we must take, but I understand the concern that it may conflict with youth employment. About 20% of the youth employment issue is related to this, but the rest is different." He explained, "The jobs preferred by young people do indeed conflict with retirement age extension. From the perspective of companies, simply increasing the retirement age without changing the wage system would be a significant burden."

He added, "The situation is different for regional small and medium-sized enterprises. Some companies are asking for the retirement age to be abolished altogether, and some small manufacturers are even asking to bring in foreign workers." He explained, "The labor policy of the Lee Jaemyung administration is based on 'customized targeting.' Both youth and labor issues are excessively fragmented, so each requires a different solution."

Regarding dawn delivery labor, Minister Kim defined it as not simply a matter of consumer convenience, but an issue of 'protecting the health rights of night workers.' He said, "According to international standards, night work is classified as a Group 2 carcinogen. Humanity has long followed the rhythm of working after sunrise and resting after sunset. Repeatedly disrupting this rhythm increases the risk of cardiovascular disease and overwork."

He further stated, "Dawn delivery is a 'service where supply has created demand.' Unlike the typical situation where demand drives supply, in this market, supply has generated demand. Therefore, a social discussion is needed on whether this labor is truly an essential service that must be endured."

Regarding the controversy over 'note budget' allocations to the two major labor federations, Minister Kim said, "I do not know the entire process," but acknowledged, "It is reasonable to point out that the government must take responsibility in allocating the budget." He explained the function of umbrella organizations and raised the need for support. Minister Kim said, "Protecting vulnerable workers is the role of umbrella organizations rather than industrial unions. Representing workplaces with fewer than five employees and platform workers is a social responsibility of umbrella organizations."

Yonhap News Agency

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