President Lee Jae-myung said on the 29th regarding the Yellow Envelope Act (amendments to Article 2 and 3 of the Labor Union Act), which recently passed the National Assembly amid social disagreements, that "the labor sector must also demonstrate a spirit of coexistence." Following the passage of the law, conflicts and confusion have intensified not only in the political arena but also in labor settings, as the president urged the labor sector to change its attitude toward 'coexistence' with the business community.
On that day, during the opening remarks of an extraordinary Cabinet Meeting, President Lee stated, "The true purpose of the Yellow Envelope Act is to promote mutual respect and cooperation between labor and management." He added, "I urge the labor sector to join forces as responsible economic entities for the development of the national economy," and said, "Korea must now align with international standards and levels in all sectors. I hope that you will prepare follow-up measures thoroughly to ensure that the system is established on site."
◇Just three days after the law's passage, a representative from the group company was sued
The president's comments came amid a series of lawsuits and rallies by subcontractor and subsidiary unions against primary contractors following the passage of the Yellow Envelope Act. The Yellow Envelope Act limits compensation claims against corporations for illegal strikes and allows subcontractor unions to negotiate with primary contractors. It will take effect early next year after a six-month grace period. However, the business community believes that unions have already begun asserting their power over corporations, raising concerns that it could lead to mass strikes.
In fact, the Hyundai Steel subcontractor union filed a lawsuit against Chung Eui-sun, chairman of the Hyundai Motor Group, and Hyundai Steel management with the prosecution on the 27th, just three days after the Yellow Envelope Act passed the plenary session. This is the first such action following the law's passage. The reason for the lawsuit is that Chairman Chung allegedly directed the illegal activities of Hyundai Steel multiple times as the head of the Hyundai Motor Group. Notably, it is significant that he was considered a 'real employer' in negotiations beyond just the primary contractor.
Concerns are particularly high in industries with many subcontractors, including shipbuilding, which is noted as a key player in the tariff negotiations with the United States. However, the ruling Democratic Party of Korea is currently taking a position that they will fix any issues after enacting the law. The People Power Party proposed establishing a 'joint committee for labor and management discussions' to discuss amendments to the law. Relevant discussions are expected during a meeting proposed by President Lee through Chief of Staff Woosang Oh with the leadership of the ruling and opposition parties.