The Ministry of Employment and Labor (MOEL) decided to establish an advisory committee to determine employer status and whether a labor dispute exists. The move aims to minimize confusion that could arise from the enforcement of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act).
According to the government on the 18th, the ministry on the 11th gave advance notice of legislation for the enactment of the Regulation on the Establishment and Operation of the Committee to Support Determinations on Collective Bargaining, which includes these details. The ministry said, "As the scope of labor disputes has expanded with the revision of the yellow envelope law, we are establishing the committee to support administrative interpretations of individual and specific cases in the field."
The committee will be established at the ministry's headquarters. It will consist of up to 10 Commissioners, including the Chairperson. It will serve an advisory role upon request by the Minister. Its main task is providing administrative interpretations on employer status and whether a labor dispute applies.
A ministry official said, "While administrative interpretations are not legally binding, interpretations issued by the committee could serve as guidelines on the scope of employer status and labor disputes."
The yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, which takes effect on the 10th of next month, includes provisions to strengthen the responsibility of prime contractors for subcontracted workers. The concept of employer has been expanded from "a party to an employment contract" to "a position that can exercise substantial and specific control and decision-making over a worker's working conditions." Because of this, management circles are concerned that prime contractors will have to respond to numerous bargaining demands from subcontractors.
The scope of labor disputes is also expected to expand from "determination of working conditions" to "determination of working conditions and business management decisions that affect working conditions." In this case, there are concerns that reasons for strikes could extend to areas of managerial judgment and uncertainty across corporations will grow.
In December last year, the ministry released specific guidelines related to the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers. The ministry viewed prime contractors as employers of subcontractors when they exercise "structural control."
Regarding the scope of matters subject to labor disputes, it determined that business management decisions such as mergers, partitioning, transfers, and sales of corporations themselves are not subjects of collective bargaining. However, it said this is limited to cases where layoffs or restructuring accompany the implementation process.
However, labor circles said this could undermine the purpose of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers. In contrast, management circles criticize the examples and wording as excessively broad.