Subcontracted Workers Demand Direct Bargaining with Parent Companies as ‘Yellow Envelope Law’ Takes Effect

Reporter Kim Jisun / approved : 2026-03-11 06:13:41
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Members of the Korean Confederation of Trade Unions (KCTU), including President Yang Kyung-soo, hold placards and chant slogans during a rally in Seoul’s Sejongno on March 10, the first day of the implementation of the so-called “Yellow Envelope Law” (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act). (Photo = Yonhap News Agency)

 

 

[Alpha Biz= Kim Jisun] Subcontracted workers in South Korea are increasingly demanding collective bargaining with parent companies following the implementation of the so-called “Yellow Envelope Law” on March 10.

The Federation of Korean Trade Unions (FKTU) said that two affiliated unions — the Korean Metal Workers’ Federation, representing unions from 34 POSCO subcontractors, and the National Parcel Delivery Workers’ Union — each sent official requests for collective bargaining to POSCO and Coupang Logistics Services (CLS).

Under the revised Trade Union and Labor Relations Adjustment Act, parent companies can be recognized as employers if they exercise “substantial and specific control” over subcontracted workers. Workers who meet these conditions now have the legal right to demand collective bargaining directly with the parent company.

After receiving the requests, POSCO and Coupang CLS publicly announced the unions’ demands and invited other subcontractor unions to submit bargaining requests by March 17 if they wish to participate, effectively acknowledging the initial requests.

POSCO, however, noted that it plans to seek legal clarification before proceeding with negotiations. In a notice, the company said it would “seek legal judgment regarding the scope of actual control before engaging in negotiations.”

An FKTU official said more subcontractor unions are preparing similar bargaining requests.

“We understand that additional workplaces are preparing to request negotiations with parent companies,” the official said. “We plan to conduct on-site investigations and analyze the results to support subcontractor unions preparing for negotiations.”

Early Tuesday morning, subcontracted workers who traveled from Pohang and Gwangyang held a press conference outside POSCO Center in Daechi-dong, Seoul, demanding that the steelmaker take part in negotiations.

“The real boss is not the subcontractor company but POSCO,” the workers said.

POSCO has converted several in-house subcontractors into subsidiaries over the past two to three years. However, employees not included in the conversion remain subcontracted workers and are affiliated with multiple industry unions under both the FKTU and the Korean Confederation of Trade Unions (KCTU).

The FKTU’s metal industry federation, representing a coalition of POSCO partner and supplier unions, formally requested bargaining with POSCO at midnight when the revised law took effect.

Meanwhile, the KCTU filed a request with the Gyeongbuk Regional Labor Relations Commission to separate bargaining units by union. POSCO subsequently posted notices about the requests at its Pohang and Gwangyang steelworks.

The notice stated that the announcement was made in accordance with relevant laws after receiving bargaining requests from a union representing 33 subcontracting companies, adding that the company plans to seek legal judgment on the scope of actual control before negotiating.

Separately, another press conference was held the same day outside Hyundai Mobis’ headquarters in Yeoksam-dong, Seoul, organized by the Korean Metal Workers’ Union and subcontractor unions representing production-focused subsidiaries Motras and Unitus.

Union members argued that Hyundai Mobis should respond to the bargaining requests.

“Even if we are subsidiary employees, the products we make while wearing Hyundai Mobis uniforms are supplied to Hyundai Motor under the Hyundai Mobis name,” they said. “The company should respond to bargaining requests from subcontractor unions.”

 

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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