The Ministry of SMEs and Startups will hear concerns directly from small and midsize enterprises ahead of next year's implementation of the so-called "Yellow Envelope Act" (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act). Based on opinions raised at a roundtable, the ministry plans to work with the Ministry of Employment and Labor to minimize uncertainty and burdens at worksites in the early stage of the law's implementation.
The Ministry of SMEs and Startups said on the 22nd that it will hold a "Roundtable with the SME sector on amendments to Articles 2 and 3 of the Trade Union Act" at the Korea Federation of Small and Medium Enterprises on the 22nd.
The roundtable was arranged to hear on-site proposals directly with the Ministry of Employment and Labor so that the so-called "Yellow Envelope Act," set to take effect in March next year, can make a soft landing in industrial worksites. The industrial field has raised concerns that the amendments could increase the likelihood of labor-management disputes.
Attendees included Minister Han Seong-suk of the Ministry of SMEs and Startups and the director general for labor-management cooperation policy at the Ministry of Employment and Labor, along with SME associations and groups, heads of industry-specific cooperatives, and academic experts. The event proceeded with an expert presentation on the Trade Union Act amendments followed by an open industry discussion.
Jeong Heung-jun, a professor at Seoul National University of Science and Technology who took part as a presenter, explained the main revisions: ▲ expansion of the scope of "employer," ▲ expansion of the scope of labor disputes, and ▲ limits on damage claims. He then noted that, as prime contractors may bear greater bargaining responsibility in principal–subcontractor relationships, concrete standards and a strengthened manual are needed.
During the discussion, industry representatives offered various views to ensure the system takes root. Song Byung-jun, chair of the Korea Venture Business Association, said, "With the remaining time until the revised law takes effect, tailored guidelines should be prepared, and venture companies and startups need to strengthen their capacity to respond to labor-management disputes."
Kim Myeong-jin, chair of the Main-Biz Association, said, "For service companies with complex contract structures, the scope of 'employer' is unclear, raising concerns about on-site confusion," and proposed, "Please ensure that these industry characteristics are reflected in the manual development process."
Gwak In-hak, chair of the Korea Metal Panel Industry Cooperative, requested, "Please put in place safeguards so that suppliers' bargaining power is not weakened during bargaining between prime contractors and unions."
Minister Han Seong-suk said, "We will closely review today's on-site views and work closely with the Ministry of Employment and Labor to minimize difficulties for SMEs during the implementation of the system," adding, "The government will actively support SMEs so they are not discouraged by the institutional changes and so this leads to the establishment of sound labor-management relations and the development of the industrial ecosystem."
She added, "Over the remaining six months until the law takes effect, we will gather enough on-site input to ensure a soft landing without confusion," and "We ask the SME sector to use the Ministry of SMEs and Startups as a communication channel at any time."