[Editorial] The Yellow Envelope Act has caused confusion, and there is no way to resolve it except through revision

On the 22nd, Kim Young-hoon said the Ministry of Employment and Labor would prepare measures to clarify the scope of labor unions' bargaining and industrial action after the Yellow Envelope Act, or the revised labor union law, took effect and sparked controversy. The move follows President Lee Jae-myung's remarks the previous day, when he pointed to disputes arising in labor settings and said that 'N% performance bonuses' are not subject to labor disputes.
The confusion the Yellow Envelope Act would create has been a persistent concern since the law was first proposed. As expected, labor-management conflict has become especially intense over the issue of determining who qualifies as an employer. One example is the dispute over whether workers who handle cleaning services at a semiconductor company can launch a labor dispute against the company.
Another issue is the provision that brings 'management decisions' into the scope of union industrial action under the Yellow Envelope Act. For example, decisions once regarded as management prerogatives, such as building a new factory or relocating a production base, can now become subjects of bargaining if they are closely related to workers' working conditions.
When the Samsung Electronics supra-enterprise labor union said it would place the construction of the Honam semiconductor plant on next year's labor-management bargaining agenda under this provision, President Lee criticized the move as 'absurd' and instructed the labor ministry to establish relevant standards. The opposition party denounced the ruling party, saying the Yellow Envelope Act was blocking the Honam semiconductor project and that the ruling party had brought the problem on itself. By contrast, the two major umbrella labor federations protested, saying the president's remarks did not align with the purpose of the legislation.
Even if the government sets detailed standards and boundaries, it will be difficult to satisfy both labor and management. Rules created through decrees or regulations that must follow the Yellow Envelope Act, the higher law, will not eliminate the conflict. In the end, both sides will almost certainly seek a judicial ruling.
The ruling Democratic Party of Korea is responsible for creating this confusion, and President Lee also supported and agreed to the enactment of the Yellow Envelope Act. Now that they appear to be speaking as if the confusion and conflict are someone else's problem, the opposition party has ample reason to criticize them. The Yellow Envelope Act should have been made clear at the legislative stage, and any new provisions tilted toward labor should have been handled with caution. The DPK ignored and dismissed every opposing voice at the time, so it bears responsibility for resolving the confusion.
The only way to resolve this is to revise the problematic provisions. Even if the government issues guidelines, there is a strong chance the unions will not accept them. It will not be easy to roll back provisions that were designed to favor one side. Even so, the ruling party should take a calm approach and put the issue of revising the law on the table for discussion.
Performance bonuses may not be a mandatory subject of bargaining if the law is interpreted properly, but the damage has already been done. Companies across the country, and the entire nation, are now in an uproar over bonuses. The government itself is fueling the fire by discussing how excess profits should be used for specific purposes. It is impossible to deny that pro-labor policies that strengthened union power lie behind this situation.
Labor movements should not be suppressed, but if they grow too powerful, they can become an obstacle to corporate growth and national development. Haven't citizens already witnessed the Samsung Electronics supra-enterprise labor union securing excessively generous performance bonuses, even by the public's standards, while holding the company hostage with a strike? Such incidents will happen again.
From now on, the government and the ruling party must take a balanced approach to labor policy. They should protect legitimate union rights, but respond firmly to the abuse of those rights.