Opposition from the business community regarding the National Assembly's Yellow Envelope Law (amendments to Articles 2 and 3 of the Trade Union Act) is intensifying. In particular, the major industries in Korea, such as automotive and shipbuilding, which play key roles in U.S.-Korea tariff negotiations, have called for a halt to the legislation.
The Korea Enterprises Federation (KEF) issued a joint statement on the 30th, urging a halt to the amendments to the Trade Union Act, along with major industry groups such as the Korea Automobile & Mobility Association, the Korea Shipbuilding & Marine Engineering Association, the Construction Association of Korea, the Korea Fiber Industry Association, the Korea Petroleum Association (KPA), the Korea Iron & Steel Association, the Korea Semiconductor Industry Association, and the Korea Battery Industry Association (KIBA).
Lee Dong-geun, vice chairman of KEF, said, "As the amendments to Articles 2 and 3 of the Trade Union Act are passed, the sense of crisis in the industrial field is growing. The business community strongly requests a halt to the amendment of the Trade Union Act, which could jeopardize our corporations and economy, with a desperate mindset."
The Yellow Envelope Law aims to expand the scope of employers, strengthening the responsibility of primary firms for subcontracted workers and limiting companies' claims for damages related to union disputes. It passed the National Assembly twice during the administration of Yoon Suk-yeol, but the legislation was blocked due to the former president's right to request reconsideration (veto power).
The business community argues that if the scope of employers is expanded, the industrial ecosystem between primary and subcontractors will collapse and competitive power will decline. Given the nature of domestic manufacturing, which consists of multi-tiered collaborative systems like automotive, shipbuilding, and construction, there will be increased confusion on-site if hundreds of subcontracting unions demand negotiations, as primary contractors will be unable to determine whether they are obliged to negotiate.
In particular, the shipbuilding industry, which is highlighted in tariff negotiations with the U.S., is expected to suffer greatly due to its high proportion of subcontractors. It is essentially a structure that works with hundreds of partner companies, and if a situation arises where all must negotiate with them, this could lead to production delays, overdue deliveries, and a decline in industrial competitiveness.
Concerns have also been raised that it could lead to a culture of strike omnipotence. The vice chairman stated, "Even now, there are frequent illegal activities such as violence, destruction, occupation of business sites, and obstruction of entry by strong unions in industrial fields. If the amendment passes, high-level management decisions such as investment decisions, transfer of business sites, and restructuring could become subjects of disputes."
He noted, "Even if unions commit illegal acts, the limitation on claims for damages will cause significant turmoil in the industrial field due to frequent labor-management conflicts and illegal activities. Corporations will find it difficult to adapt to the rapidly changing industrial environment, ultimately losing their competitive edge in the global market, and this will adversely affect small and micro-enterprise workers and future generations who are threatened by job losses."