The People Power Party met with business leaders on the 15th and said it would push for a re-revision 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), noting that "from the standpoint of managing corporations, there is talk that it is hard even to draw up proper management plans."
The People Power Party held a "People Power Party–business community meeting on labor issues" at the National Assembly that day to hear voices from the industrial front. Floor leader Song Eon-seog of the People Power Party, pointing to side effects of the yellow envelope law taking effect, said, "It has become reality that, at parent companies, they have no choice but to spend all their time worrying over which subcontractor union they must negotiate with at some point within a year."
Song said, "It has been one month since the yellow envelope law took effect, and 1,011 branches of subcontractor unions are demanding talks from 372 parent employers," adding, "That amounts to close to 146,000 people in total." He went on, "From the standpoint of managing corporations, it is difficult even to set proper management plans."
Policy Committee Chair Jeong Jeom-sik said, "Corporations are expending more energy on endless labor disputes and litigation responses, rather than on their core businesses of technology development and job creation," adding, "This is a serious problem that goes beyond dampening corporate activity to shaking the very foundations of national competitiveness."
He added, "If this situation continues, the yellow envelope law will not only become a factor weakening the competitiveness of our corporations but also a decisive factor deepening the Korea discount," stressing, "By dampening corporations' investment appetite and sending negative signals to the stock market, the damage will inevitably lead to fewer youth jobs and a decline in vitality across the national economy."
Across industries, the business community voiced in unison concerns about workplace confusion and heightened management uncertainty following the law's implementation. In particular, calls were raised to shore up the law by clarifying the criteria for determining employer status, setting the scope of bargaining by agenda, establishing clear boundaries of responsibility between parent and subcontractors, and allowing replacement workers to ensure employers' rights of defense.
Lee Dong-geun, executive vice chairman of the Korea Enterprises Federation, said, "The biggest problem is that even if corporations want to contest the vague scope of 'employer' in court, it could constitute an unfair labor practice such as refusal or neglect of collective bargaining," adding, "Even though labor's right to organize has been strengthened, legislation to bolster employers' rights of defense—such as allowing replacement work and banning occupation of business sites—has not even been discussed."
Oh Chung-jong, vice chairman of the Korea Offshore & Shipbuilding Association, also said, "We fully understand the intent of the law, but for improvements to the parent–subcontractor production cooperation structure to translate into stronger industrial competitiveness, concrete guidelines are needed that take into account minimum safety mechanisms for operational stability and on-time delivery, such as allowing replacement work."