On the 30th, the Korea Employers Federation and major industry-specific organizations released a joint statement urging the halt of the amendment to the Trade Union Act. The business sector’s backlash against the National Assembly’s push for the Yellow Envelope Act (amendment to Articles 2 and 3 of the Trade Union Act) is intensifying. Key industries in South Korea, including automotive and shipbuilding, which play a major role in the Korea-US customs negotiations, are calling for the cessation of the legislation.
On the 30th, the Korea Employers Federation (KEF) and 13 other industry-specific organizations issued a joint statement to urge a halt to the amendment to the Trade Union Act. Lee Dong-geun, the executive vice-president of KEF, expressed concern that the amendment would recklessly expand the scope of users, disrupting the industrial ecosystem between primary and subcontracting firms and severely undermining South Korea’s industrial competitiveness.
Furthermore, Vice President Lee stated that the amendment denies the substance of contracts in civil law, specifically targeting non-contractual primary firms as parties in labor relations and potentially making them the target of disputes. He elaborated that in a situation where domestic manufacturing industries such as automotive, shipbuilding, and construction are organized into multi-tiered collaboration systems, continuous industrial action against primary firms could inevitably lead to the collapse of the industrial ecosystem between primary and subcontracting firms.
These organizations argued that Korea’s shipbuilding industry, which is under scrutiny in U.S. customs negotiations, has a high proportion of partner companies and would suffer the most significant damage from any amendment to the labor law. They also warned that the Yellow Envelope Act might cause South Korea to lose its competitiveness in the global market.
They claimed that even if unions engage in illegal activities, the limitation on claims for damages might lead to frequent labor disputes and illegal activities at industrial sites, causing considerable chaos. They argued that businesses would lose their competitive edge in the global market, and the resulting damage would ultimately be transferred to small and medium-sized enterprises and their workers, threatening jobs and affecting future generations.
The 13 industry-specific organizations strongly urged, “The National Assembly should stop reviewing the amendment to the Trade Union Act now,” and requested re-evaluation of the industrial chaos the law might cause to ensure that businesses operate normally.