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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Nearly nine out of 10 major South Korean companies expect the so-called “Yellow Envelope Act”—amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act set to take effect in March next year—to have a negative impact on labor-management relations, according to a new survey.
The Korea Employers Federation (KEF) said on December 14 that 87% of respondents in a survey of 100 companies with annual sales exceeding KRW 500 billion forecast adverse effects from the legislation. Of these, 45% cited “somewhat negative” impacts and 42% “very negative” impacts. Only 12% said the law would have little effect, while just 1% anticipated positive effects.
The amendments expand the definition of “employer,” enabling subcontractor unions to bargain directly with prime contractors, and limit companies’ ability to seek damages against striking workers. Companies cited concerns over an increase in bargaining demands by subcontractor unions (74.7%) and greater legal disputes due to ambiguous provisions (64.4%). A majority also warned that unclear standards for determining “effective control” could fuel legal conflicts.
KEF said the findings indicate that anticipated disruption stems from the law’s lack of clarity, noting that government guidelines are not legally binding and may fail to prevent litigation.
Regarding limits on damage claims against unions, 59% of companies expect growing demands for immunity from liability for illegal actions, while many also fear an increase in unlawful acts outside formal labor disputes and workplace occupations.
An overwhelming 99% of respondents called for supplementary legislation to prevent confusion, with 63.6% urging a delay in enforcement until legal uncertainties are resolved. Others emphasized the need to clarify standards for managerial decision-making subject to labor disputes and to more clearly define the scope of “employer.”
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
