At the Launch of the ‘Corporate Growth Forum’ by Three Economic Associations,
“(Seoul = Yonhap News) Reporter Kang Tae-woo – Kim Eun-hye, Deputy Chief Policy Maker of the People Power Party, and Kim Young-hoon, Minister of Employment and Labor, engaged in a heated debate regarding the so-called ‘Yellow Envelope Act’ (Amendments to Articles 2 and 3 of the Labor Union and Labor Relations Adjustment Act) on the 4th.”
“This took place at the launch of the ‘Corporate Growth Forum’ hosted by the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, and the Korea Federation of Small and Medium Business at the Lotte Hotel in Jung-gu, Seoul.”
“Deputy Chief Kim raised concerns, stating, ‘The Yellow Envelope Act could lead to a flood of lawsuits against entrepreneurs.’ In contrast, Minister Kim publicly countered, saying it would be the first step in addressing structural disparities.”
Kim expressed concerns at the event, saying, “Two days ago, the so-called Yellow Envelope Act was passed in the cabinet meeting. I am well aware of the origins of the labor union law, but I wonder if it can truly uphold workers’ rights,” adding, “Policies initiated with good intentions can inevitably have negative effects.”
He further pointed out that ultimately, the victims of the Yellow Envelope Act would be the workers.
Kim argued, “Companies might face a series of lawsuits, challenging negotiations with regular unions, or because of selective unions, regular unions might have to share the burden. If that doesn’t work, they might consider relocating factories or withdrawing capital.”
He continued, “Even though it began with good intentions for workers, the victims of this aristocratic union law will ultimately be the workers, young people, non-regular workers, subcontractors, and the powerless and weak.”
In response, Minister Kim emphasized the need to confront the current realities, stating, “The disparities within the labor market are restricting our economy’s potential, and without addressing these gaps, continuous growth of companies and creation of quality jobs will be difficult,” and highlighted the importance of creating a symbiotic primary-subcontractor industry ecosystem for sustainable corporate growth.
Minister Kim stated, “The Yellow Envelope Act started with the intention of resolving conflict structures and aligning authority and responsibility for both labor and management,” and suggested, “Once this law is settled, it will increase predictability and stability in business operations in the long run.”
He recognized the concerns within business and management circles about the Yellow Envelope Act.
Minister Kim mentioned, “With the implementation date of the law becoming visible, the government will spare no effort in ensuring that the intent of the law is fully realized onsite over the next six months, addressing concerns raised by management, such as new primary-subcontractor negotiation methods.”
He also clarified, “As concerned by the management community, the revised union law does not aim to endorse indiscriminate negotiations or illegal strikes,” adding, “No government tolerates illegality. This law should not result in unnecessary victims, nor should it create perpetrators.”
The Yellow Envelope Act, set to be implemented in March next year, focuses on expanding the scope of users and subjects of labor disputes and restricting corporate claims for damages against striking workers.