Yellow

March 13 (Asia Today) — This commentary is the Asia Today Editor’s Op-Ed.

The atmosphere across industrial workplaces following the implementation of the so-called Yellow Envelope law is far from normal, with growing uncertainty emerging across the labor market.

Within two days of the law taking effect, 453 subcontractor unions representing nearly 98,500 workers filed collective bargaining requests against 248 prime contractor workplaces. With many unions closely watching the situation, the number of bargaining demands is expected to increase sharply once the first successful negotiations occur.

Most companies are struggling to respond effectively to the demands from subcontractor unions. Many firms believe the best course of action is to wait for decisions by the Central Labor Relations Commission and for court precedents to emerge through litigation.

Amid this uncertainty, attention is focusing on the activities of South Korea’s two major labor federations – the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions – which have launched campaigns to expand their influence.

Both organizations view the new law as a major opportunity to increase union membership. With the national unionization rate hovering just above 10%, labor leaders believe the law could help reverse the trend.

The Federation of Korean Trade Unions, which had about 1.2 million members as of 2024, has launched an organizing task force with the goal of expanding its membership to 2 million.

The Korean Confederation of Trade Unions has also set an internal target of reaching 2 million members.

As the two federations compete for leadership within the labor movement, the revised labor law is emerging as a catalyst for organizational expansion. Subcontractor unions with limited bargaining power are increasingly turning to these larger labor groups for support.

The shift is already visible. The labor union at auto parts manufacturer Mando recently voted to rejoin the Korean Confederation of Trade Unions’ Metal Workers’ Union after 14 years.

Union leaders reportedly concluded that joining an industrywide union could help reduce job insecurity, particularly as corporate restructuring has become a potential subject of collective bargaining under the new law.

If even the union at a primary contractor such as Mando has decided to rejoin the federation, the choice for subcontractors, special employment workers and platform laborers with weaker bargaining power appears increasingly clear.

The public sector is also experiencing confusion.

While the government has stated that recognizing employer status in the public sector is generally difficult, President Lee Jae-myung offered a different message, saying the government should serve as a model employer.

As a result, collective bargaining demands are pouring in from outsourced workers and subsidiary employees affiliated with central and local governments as well as public institutions. Many of these public-sector unions are also expected to seek membership in the two major labor federations.

Subcontractor unions backed by the organizational strength and strike guidance of higher-level labor groups are likely to adopt a more aggressive stance in labor disputes.

In particular, the expansion of the Korean Confederation of Trade Unions – often criticized by companies for confrontational labor tactics – could undermine the stability of labor-management relations.

For companies operating in a rapidly changing business environment that demands specialization and efficiency, the situation presents growing challenges.

The competitiveness of government agencies and public institutions could also be affected.

If the government truly seeks to protect the livelihoods of citizens, it must prioritize the competitiveness of businesses and the national economy while taking steps to minimize disruption across industrial workplaces.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260312010003757

March 8 (Asia Today) — A senior labor official said South Korea’s revised labor law should be implemented carefully, emphasizing precise enforcement rather than rapid expansion when it takes effect Monday.

Ryu Je-gang, head of Policy Division 2 at the Korean Confederation of Trade Unions, said the success of the legislation will depend largely on how enforcement decrees and interpretation guidelines function in practice.

“The success of the system depends less on the articles themselves and more on how enforcement rules work in the field,” Ryu said in an interview with Asia Today. “Refining the scope of application, criteria and support systems should take priority over expanding the law too quickly.”

The legislation, commonly known as the “Yellow Envelope Law,” revises Articles 2 and 3 of South Korea’s Trade Union Act and will take effect Monday.

Supporters say the amendment expands the concept of employer responsibility, allowing subcontracted workers to demand negotiations with a principal contractor even without a direct employment contract.

Ryu described the change as opening “the door for negotiations with the primary employer.”

Previously, restructuring measures such as mergers, divisions or asset transfers were often excluded from collective bargaining on the grounds they were management decisions, he said. The new framework could help address disputes related to layoffs and restructuring.

Business groups have warned the legislation could increase labor disputes by limiting corporate claims for damages or asset seizures against unions during strikes.

Ryu rejected those concerns, saying the provisions largely reflect existing court precedents rather than introducing entirely new rules.

“I do not expect a dramatic increase in labor disputes simply because of this change,” he said.

However, he acknowledged the law may face practical limitations. Workers will still need to prove employer responsibility, and procedures such as unified bargaining channels and requests to separate bargaining units could make negotiations difficult.

“The procedural barriers remain high,” he said. “If negotiations themselves are difficult, expanding labor disputes will not be easy.”

Ryu also warned the amendment may not fully protect some categories of workers, including special employment and platform workers who often lack traditional labor contracts.

In the short term, he said the law could lead to increased demands for negotiations with companies previously seen as responsible but not directly engaged in collective bargaining.

Over the longer term, however, the changes could help ease tensions created by complex subcontracting systems.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260309010002098