The yellow envelope law (amendments to Articles 2 and 3 of the Labor Union Act) passed the National Assembly on the 24th, increasing tensions between labor and management in the IT industry. Employees of Naver, a leading company in the IT sector, are growing more vocal as they request direct negotiations with the company.
The industry is watching cautiously, believing that the yellow envelope law will not have a significant impact on the IT sector, unlike in manufacturing where the primary contractor and subcontractor relationships are clear. However, following government guidelines, it seems that IT companies will also become negotiation parties.
The Korean Confederation of Trade Unions (KCTU) Korean Chemical, Textile & Food Workers' Union (KCTFU) Naver branch held a rally in front of Naver's headquarters in Seongnam, Gyeonggi Province, on the afternoon of the 27th. They claimed that Naver must directly address the discriminatory treatment of six corporations, including Green Web Service, Studio Rico, NIT, EnTech Service, Inc., Incomez, and Companters.
The Naver union explained that since its establishment in 2018, it has demanded integrated negotiations regarding wages and welfare with its parent company and affiliates, but due to the company's refusal, it has proceeded with negotiations on a corporate-by-corporate basis. The union currently claims that there is a gap in performance bonuses and welfare levels between the headquarters and its subsidiaries, resulting in a breakdown of negotiations. They argued that Naver, which is practically involved in each business, should take the lead in negotiations.
Naver did not respond to the union's claims, stating that under current law, subsidiary unions are not negotiation subjects. However, if the yellow envelope law is implemented in the future, Naver, as the parent company, will also be obligated to negotiate. The yellow envelope law defines the range of employers as "those in a position to practically and concretely control and determine working conditions." Employees of subcontractors or partner companies and those in special employment can also demand negotiations and even strike against primary contractors or large corporations. The yellow envelope law is set to take effect six months after its promulgation following a resolution.
While IT companies are closely monitoring the actions of the Naver union, they anticipate that it will not have a major impact compared to the manufacturing sector. Unlike the automotive and shipbuilding industries, which have a clear vertical supply chain structure, the IT sector, dealing with software and content, finds it challenging to consider a physical subcontracting structure.
An industry official noted, "The IT sector mostly pursues a horizontal collaborative structure, so it may be ambiguous to say it falls under the influence of the yellow envelope law." Another industry official said, "In the future, the union may raise its voice under the pretext of the yellow envelope law; however, it is difficult for the company to take a stance as detailed subordinate laws have not yet been established."
Warnings are emerging in the economic sector that the IT industry could also be subject to the yellow envelope law, depending on the contents of the subordinate laws. It is stated that subsidiaries, which were conducting independent negotiations, may demand direct negotiations with the headquarters. The Ministry of Employment and Labor plans to specifically define the range of employers and labor disputes in the next six months.
Previously, six economic organizations, including the Korea Enterprises Federation, issued a statement saying, "Although the scope of employers and the concept of labor disputes have expanded, it remains unclear who qualifies as an employer under the law and how far business decisions that become the subject of labor disputes extend, leading to inevitable legal disputes between labor and management in the future."