[Editorial] Fierce labor unrest from the outset: curb strikes and resolve disputes through dialogue

This summer's labor unrest is expected to hit industry with a shock unlike previous years. Beyond wage increases and welfare issues, a series of sharp labor-management disputes is waiting to erupt. The most prominent of these will be the debate over employment structures between parent companies and subcontractors, triggered by the enforcement of the Yellow Envelope Act. On top of that, disputes over performance bonuses in the finished car and information technology (IT) sectors are poised to fuel the unrest. Added to the mix is job insecurity caused by the introduction of Artificial Intelligence (AI), making this year's labor conflict even more intense. Taken together, these issues leave the impression that the country is becoming a strike republic.
The most striking feature of this summer's labor unrest is the widening front over collective bargaining with parent companies, sparked by the Yellow Envelope Act. Since the law took effect in March, tensions have been rising over negotiations between parent firms and subcontractors. Industries that form the backbone of South Korea's manufacturing sector, including automobiles, shipbuilding, steel, plants, and construction, are likely to be swept into a wave of conflict over this issue. Business circles had already warned, even before the law passed, that severe confusion would break out at worksites. Those concerns have now become reality, and the law is serving as kindling for a broader labor conflict.
Performance bonus disputes have now been added to the mix. The Hyundai Motor Company union has secured the right to strike after demanding bonuses equal to 30% of last year's net profit. Kakao has followed its first-ever strike with a plan for a "Logout Day." In this way, disputes over bonuses are spreading across both manufacturing and IT, following the struggle over bargaining with parent companies. That is not all. The Korean Metal Workers' Union (KMWU) has included employment and human rights protections in its key demands when AI is introduced. There are concerns that AI could threaten human jobs, but that will not happen immediately. Even so, future problems are being dragged into this year's labor battles.
Workers cannot be blamed outright. The three basic labor rights are guaranteed by law. However, demands that ignore reality can push not only companies but also the broader economy into crisis. What is even more worrying is the current environment of fierce global competition, where companies are fighting for survival. China is encroaching on global markets with price competitiveness, while the United States and Europe are protecting their own industries with tariff barriers. South Korean manufacturing is caught in the middle, trapped in a difficult position. At such a critical time, can labor groups win public sympathy by taking strikes hostage and escalating labor unrest more aggressively than ever?
There is still ample room to resolve the conflict surrounding the enforcement of the Yellow Envelope Act through dialogue between labor and management. Bridging the gap between the law's intent and its application on the ground is the most reasonable solution. The scope of employer responsibility for parent companies and the procedures for bargaining are issues that labor, management, and the government must address together. To that end, labor groups also need a responsible attitude: before turning to strikes as a universal weapon to force through their demands, they should first make an effort to keep dialogue alive. The core of the problem is the Yellow Envelope Act, which has created this confusion. If the problem is serious, revision should be pursued without delay.