Ruling Party "Yellow Envelope Act, Reflecting Corporate Opinions".. Economic 6 Organizations "May Relocate Overseas"

[Financial News] Members of the Democratic Party's National Assembly Environment and Labor Committee met with the Economic 6 Organizations on the 14th and announced that they would promote the Yellow Envelope Act (amendment of Articles 2 and 3 of the Trade Union Act) reflecting the opinions of companies. The Economic 6 Organizations expressed concerns that if the Democratic Party's proposal is implemented as it is, confusion in the industrial field is inevitable.


Ahn Ho-young, a Democratic Party member and chairman of the Environment and Labor Committee, held a labor policy meeting with the Economic 6 Organizations, including the Korea Employers Federation, Korea Chamber of Commerce and Industry, Federation of Korean Industries, Korea International Trade Association, Korea Federation of SMEs, and Korea Federation of Medium Enterprises at the Korea Employers Federation Hall in Mapo-gu, Seoul, on the same day. He stated, "It is the responsibility of the Environment and Labor Committee to prepare a rational and prompt alternative that can be accepted by management, labor, and the public," and "We will expand social consensus and create a win-win solution through continuous communication and consultation."
Kim Joo-young, a Democratic Party member and secretary of the Environment and Labor Committee, also said, "We will look for parts where the opinions of managers can be included in the legislative process of the Yellow Envelope Act."
The Yellow Envelope Act, which is a national task of the Lee Jae-myung government and is being accelerated by the Democratic Party, aims to expand the scope of union disputes, limit damage claims against striking workers, and guarantee bargaining rights for subcontracted workers against the primary contractor.
The business community believes that confusion in the industrial field is inevitable. In particular, it is practically difficult to claim damages by considering individual faults and contributions separately for union strikes, which could lead to an increase in illegal activities.
Son Kyung-sik, chairman of the Korea Employers Federation, pointed out at the meeting, "It was made so that those involved in illegal activities bear responsibility for damages according to their degree of involvement, such as individual faults and contributions, but in reality, it is difficult to prove when unions occupy workplaces and cover CCTV during strikes." He added, "Most of the court rulings that recognized damage claims against union members were due to extreme illegal activities such as workplace occupation, and if the victim's right to claim damages is restricted, illegal activities could expand significantly."
Regarding the bargaining rights of subcontracted workers, he also warned, "If hundreds of subcontracted unions demand negotiations, the primary contractor cannot respond to each case, and the industrial field will fall into a state of extreme confusion," and "If subcontracted unions frequently go on strike, the primary contractor may sever ties with domestic partners and relocate businesses overseas."


The Democratic Party's Environment and Labor Committee announced that it would consult with the business community, but it is uncertain whether the corporate position will be reflected as the government and ruling party aim to process it within the July extraordinary session of the National Assembly. Previously, President Lee Jae-myung reportedly mentioned the Yellow Envelope Act, which is also a presidential campaign pledge, as one of the key bills to be processed during a dinner with the Democratic Party's floor leadership and chairmen and secretaries of the National Assembly standing committees on the 7th.
The influence of the labor community is also strongly at play. The Korean Confederation of Trade Unions has announced an unprecedented 'summer labor struggle,' demanding the prompt processing of the Yellow Envelope Act from both the Democratic Party and the Lee Jae-myung government's Presidential Transition Committee equivalent, the National Planning Committee. For the Democratic Party and the Lee Jae-myung government, it is difficult to reject the pressure from the labor community, which is a major support base.
Even if the Democratic Party delays the timing for consultation with the business community, it is unclear how much corporate suggestions will be applied. This is because it is a matter already applied to labor-management relations as ruled by the Supreme Court, and there is no problem.


uknow@fnnews.com Kim Yun-ho Reporter