Aftermath of the Yellow Envelope Act... People Power Party Speeds Up Follow-up Legislation

From Ambiguous 'Employer' Definition to Legislative Revisions
Follow-up Amendments Focused on Protecting Managerial Rights
Further Legislation Proposed, Including Designating Semiconductors as an Essential Public Interest Industry

As controversy has continued at industrial sites just three months after the implementation of the Yellow Envelope Act (the revised Trade Union Act), the People Power Party is accelerating follow-up legislative measures. The party is pushing to revise the law focusing on issues that have emerged since implementation, such as redefining the scope of principal employers, adjusting the scope of management activities subject to labor disputes, and introducing special safeguards for the semiconductor industry.

According to the National Assembly’s Bill Information System on June 30, a total of seven bills proposing amendments to the Trade Union Act have been submitted by members of the People Power Party since the Yellow Envelope Act came into effect. The proposed amendments mainly focus on ▲clarifying the concept of “employer,” ▲resetting the scope of labor disputes, ▲allowing substitute labor during strikes, and ▲protecting nationally strategic industries.

The most contentious issue is the definition of “employer.” The current law defines an employer as “a person who is in a position to actually and specifically control or determine working conditions.” However, the business community argues that this standard is ambiguous, leading to a surge in disputes over the bargaining obligations of principal employers. According to the Korea Industry Federation Forum, as of June 19, a total of 1,611 subcontractor unions had demanded negotiations with 439 principal employers since the law’s implementation.

Accordingly, most of the bills submitted by the People Power Party focus on refining the criteria for employer status. Assemblywoman Lee Jin-sook proposed an amendment stipulating that principal employers would not be recognized as employers if subcontractors have independent personnel and labor authority as well as their own organizational structure. Assemblyman Choi Eun-seok proposed clarifying the criteria for recognizing principal employers as those who hold the same rights and responsibilities as the direct employer.

Legislation to protect managerial rights and nationally strategic industries is also underway. Assemblywoman Lee’s bill seeks to exclude managerial decisions—such as those regarding performance-based pay, personnel, and asset management—from the scope of labor disputes. Assemblyman Choi also proposed a revision that would exclude high-level managerial decisions, including personnel and management rights, from being the subject of labor disputes.

Assemblywoman Cho Eun-hee introduced a bill designating the semiconductor industry as an essential public interest business, thereby allowing minimum production line operations even during strikes. The intent is to guarantee at least core facility operations during a strike.

Assemblyman Choi stated, “If the current law remains unchanged, the global competitiveness of our manufacturing companies could be severely damaged,” adding, “We will keep open the possibility of adopting the party’s official stance and respond accordingly.”

This content was produced with the assistance of AI translation services.