The Forward Movement in Labor Negotiations: Revised Guidelines
The government has confirmed revised guidelines regarding the criteria for negotiation units. This could potentially expand the negotiation burden on primary contractors. Businesses have expressed concerns that this may lead to an increase in workplace disputes.
Consolidation of Seven Universities in Gangwon, Honam, and Yeongnam
In a push to enhance innovation capacities of regional hub universities, three out of seven national universities in regions including Gangwon and the southern provinces of Honam and Yeongnam will be consolidated.
Yellow Envelope Act Amendment for Negotiations in Multiple Union Workplaces
An amendment to the Trade Union Act, also known as the Yellow Envelope Act, which facilitates subcontractor unions in conducting negotiations with primary companies, has passed in the Cabinet meeting. As the amended act will take effect on March 10, the labor authorities plan to establish a framework for collaborative negotiation consulting and on-site support, in hopes of minimizing confusion in the early stages of implementation.
On February 24, the Ministry of Employment and Labor announced the Cabinet’s approval of the partial revision of the “Trade Union and Labor Relations Adjustment Act Enforcement Decree.” This amendment supports easier negotiations between subcontractor unions and primary companies within the framework of unified negotiation channels in businesses with multiple unions. It elaborates on factors previously indicated by court rulings and labor commission decisions that should be considered when deciding on the separation or integration of negotiation units.
The core of these revisions is the specification of criteria for negotiating unit separation to facilitate substantial negotiations between primary employers and subcontractor unions. The Labor Commission will need to comprehensively consider differences in working conditions, types of employment, and existing negotiation practices while also examining interests and potential conflicts between unions in primary-subcontractor relationships.
Additionally, the Enforcement Decree includes an interpretation guideline that clarifies the expanded definition of employers and labor dispute scopes. The guideline states that an entity can be considered an employer if it has substantial control over working conditions, even if it is not a direct party to the labor contract. This assessment will focus on structural controls, organized integration of work tasks, and economic dependency.
To reduce on-site confusion, the guideline distinguishes standard management actions under conventional contract management—such as delivery deadlines, quality control, and scheduling discussions—from determining de facto employer status. This clarification ensures that such management is not immediately equated with unlawful dispatch.
The range of labor disputes has also been refined to emphasize restructuring-related job reassignments rather than general personnel transfers, thereby mitigating interpretational disputes.
An advisory body, the “Support Committee for Collective Bargaining Determinations,” comprising legal and labor relations experts, will be introduced to provide authoritative interpretations on employer status and negotiation scopes. This initiative aims to improve forecasting capabilities in the field by accumulating and sharing cases.
Nevertheless, business circles have voiced concerns over prevailing uncertainties. The expanded definition of employers to encompass “substantial control and decision-making” could lead primary firms to face multiple subcontractor union negotiation demands concurrently. Additionally, the labor dispute scope might extend to management decisions, increasing legal interpretation disputes and overall labor relations risks within companies.
Meanwhile, the Cabinet has also approved an amendment to establish three integrated national universities from seven existing ones in response to decreasing school-aged populations and impending regional attrition. The consolidation effort, effective March 1, will see the universities in Gangwon, Honam, and Yeongnam restructured to operate as three “mega” institutions.
The Ministry of Education aims to bolster the competitiveness of these universities by reorganizing their names and structures, providing transition support for affected students and staff. For each region: Gangwon will have the merged Kangwon National University and Gangneung-Wonju National University, Honam will feature the integration of Mokpo National University and Jeonnam Provincial University, and Yeongnam will have Changwon National University unify with Gyeongnam Provincial Geochang College and Gyeongnam Provincial Namhae College.
Departments within each new entity shall restructure internal organizations and academic operations to align with these changes, focusing on becoming a key player in regional education and innovation, supported by the Ministry of Education’s global institution initiatives. Temporary structures have been approved to handle the consolidation process until February 28, 2030, allowing for adjustments in administrative charts.
Reporter: Kim Yong-hoon