Minister Kim Younghoon: "Subcontractor Unions Guaranteed Substantive Bargaining Rights... Separate Bargaining for Principal and Subcontractor Unions"

On the 24th, Minister of Employment and Labor Kim Younghoon announced, "In accordance with the intent of the revised Trade Union Act, we have prepared an amendment to the enforcement decree that includes procedures such as the unification of bargaining channels to guarantee the practical bargaining rights of subcontracted workers and to establish a stable bargaining system to support this."

During a briefing on the legislative notice of the Trade Union Act enforcement decree and enforcement rules held at the Government Complex Seoul that morning, Minister Kim stated, "We have focused on maximizing the principle of labor-management autonomy to reduce uncertainty in the field and to help ensure a stable initial implementation of the system." The amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, commonly referred to as the "Yellow Envelope Law," was revised in September and will take effect on March 10 next year.

Minister Kim first identified the basic purpose of the revised Trade Union Act as "expanding the recognition of employer status for subcontracted workers" and "guaranteeing practical bargaining rights." He explained, "The core of this revision is to change the outdated system that prevented subcontracted workers from even having a conversation with the principal company, which actually determines their working conditions," adding, "This law is about creating a foundation for sustainable growth through a labor-management relationship based on participation and cooperation."

Minister Kim highlighted the revision of the rules on "separation of bargaining units and unification of bargaining channels" as the core of this amendment to the enforcement decree. He stated, "If there are multiple subcontractor unions recognized as having employer status alongside the principal company, and labor and management autonomously agree on a bargaining method, the government will provide maximum support. If an agreement is not reached, bargaining channel unification will proceed based on the principal company's workplace, but to guarantee the practical bargaining rights of subcontractor unions, the system will be operated in a way that separates bargaining units according to the situation on the ground."

He made it clear that "since the scope of working conditions and interests differs between principal company unions and subcontractor unions, bargaining units will, in principle, be separated."

In addition, if the Labor Relations Commission recognizes the principal company's substantial control over certain working conditions, the principal company will be obligated to bargain as an employer. Minister Kim explained, "Going forward, we will minimize unnecessary disputes over employer status before bargaining," adding, "Even in matters outside the scope of the Labor Relations Commission's judgment, if the principal company and subcontractor unions negotiate through mutual agreement, we will respect their autonomy."

Minister of Labor Kim Younghoon speaking
(Seoul=Yonhap News) Reporter Jin Yeonsu = Kim Younghoon, Minister of Employment and Labor, is speaking at a foreign press briefing held at the Press Center in Jung-gu, Seoul on the afternoon of October 20, 2025. jin90@yna.co.kr (End)

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If the Labor Relations Commission recognizes employer status but the principal company fails to participate in bargaining without just cause, the government plans to promote bargaining through guidance from local employment and labor offices and measures against unfair labor practices.

Minister Kim stated that the amendment specifically defines the criteria for separating bargaining units. He explained, "The rules require a comprehensive assessment of various factors, including the scope of union organization, the commonality of interests, and the appropriateness of representation of interests."

He also announced, "A new provision has been established allowing the Labor Relations Commission to extend the decision period during the review process, such as public notice of bargaining demands, to ensure sufficient deliberation." He added, "To prevent repeated disputes over employer status between principal and subcontractor companies, the government also plans to establish a 'Committee for Supporting Employer Status Determination' (tentative name)." This committee, composed of experts, will support labor and management by providing guidance on the scope of employer status at various stages before and after bargaining, thereby increasing predictability in negotiations.

Minister Kim emphasized, "The role of the Labor Relations Commission is extremely important for the stable operation of principal and subcontractor bargaining," adding, "We are carefully preparing for the implementation of the system by increasing commission staff and enhancing on-site participation."

To reduce confusion in the field before the law takes effect, the government plans to announce three major practical guidelines within the year: 'Guidelines on Criteria for Determining Employer Status,' 'Guidelines on the Scope of Labor Disputes,' and a 'Bargaining Procedure Manual.'

Minister Kim stated, "We will include criteria for determination and concrete examples in the guidelines to increase predictability in the field under the new definition of employer," adding, "We will also clarify the criteria for determining 'managerial decisions affecting working conditions' in the scope of labor disputes." The bargaining procedure manual will detail the separation of bargaining units between principal and subcontractor companies, as well as the procedures for unifying bargaining channels.

The government plans to gather labor and management opinions through expert discussions starting in early December and announce the final version within the year.

Minister Kim also expressed his intention to actively accept various opinions raised during the legislative notice period. He said, "I am aware that there are various concerns, not only about the separation between principal and subcontractor unions but also about the possible separation among subcontractor unions themselves," adding, "If we find reasonable solutions in line with the purpose of the law through sufficient discussions with the field and experts, we will reflect them in the amendment."

He concluded by saying, "This amendment to the enforcement decree is only the beginning," and emphasized, "Together with labor and management, we will create a new order of dialogue and compromise in bargaining to realize labor-management coexistence and bridge the gap."

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