On the first day of enforcement of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, 407 subcontractor unions were tallied as having demanded bargaining with 221 parent companies. Among them, five parent companies — Hanwha Ocean, POSCO, Coupang CLS, Busan Transportation Corporation, and Hwaseong City — began bargaining procedures.
The Ministry of Employment and Labor (MOEL) on the 11th compiled and released the "Status of subcontractor unions' bargaining demands to parent business sites on the first day of enforcement (March 10) of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers." The ministry tallied the figures based on parent business sites.
According to the ministry, on the first day of enforcement, bargaining applications were received for a total of 221 parent companies, including 143 private-sector firms and 78 public institutions. The subcontractor unions that requested bargaining numbered 407 at the branch and chapter level, with a total membership of 81,600. That is about 2.9% of all union members (2.7 million).
Looking more closely, unions affiliated with the Korean Confederation of Trade Unions (KCTU) accounted for 88%, the vast majority. A total of 357 KCTU-affiliated subcontractor unions (67,200 members) demanded bargaining with 218 corporations.
Notably, 9,700 members of the KCTU's Metal Workers' Union demanded bargaining with 16 parent companies including Hyundai Motor, Hyundai Mobis, Hyundai Glovis, HD Hyundai Heavy Industries, Hanwha Ocean, and GM Korea. The Construction Industry Federation's 17,000 members demanded bargaining with Hyundai Engineering & Construction and Hyundai Engineering, among others. The Public Transport Workers' Union demanded bargaining with call centers, Yonsei University, and Korea University, while the Service Federation demanded bargaining with department stores, duty-free shops, parcel delivery companies, and Korea Post.
Forty-two subcontractor unions (9,200 members) affiliated with the Federation of Korean Trade Unions also demanded bargaining with POSCO, Coupang CLS, and Seoul Metro, among others. However, only nine parent companies received bargaining demands from the federation, fewer than from the KCTU.
Three unaffiliated subcontractor unions that do not belong to either of the two major federations also pursued bargaining demands against parent entities such as the Seoul Metropolitan Government, Gyeonggi Province, and Korea Airports Corporation (KAC).
On the day they received the bargaining demands from subcontractor unions, a total of five parent business sites — Hanwha Ocean, POSCO, Coupang CLS, Busan Transportation Corporation, and Hwaseong City — publicly posted notices acknowledging receipt. Other business sites are expected to first review internally whether to recognize employer status and then post notices, or go through labor commission rulings that can take up to 20 days.
However, the ministry said it is difficult to see the five corporations as having all recognized employer status. A ministry official said, "Whether employer status is recognized can vary depending on the agenda," adding, "The five can be seen as first following legal procedures."
Also, it was determined that subcontractor unions filed a total of 31 applications the previous day with the labor commission to separate bargaining units. The labor commission first determines whether the parent company has employer status and, if it is recognized, decides whether to separate bargaining units in consideration of on-site conditions. After that, the procedure to unify the bargaining channel proceeds within the relevant bargaining unit.
The government plans to closely track on-site conditions such as subcontractor unions' bargaining demands and disclose them regularly. In particular, if the parent company's employer status is recognized, dedicated teams at local labor offices will provide close support to ensure bargaining proceeds smoothly. Through the "collective bargaining decision support committee," experts will also provide advice on employer-status determinations and procedures. A total of 10 requests were filed with the committee on the first day of enforcement.