KAIA "Legislation of the Yellow Envelope Act Weakening the Competitiveness of the Automobile Industry Must Be Halted"

[Asia Economy Reporter Yoo Hyun-seok] The Korea Automobile Industry Association (KAIA) has called for the suspension of the legislative process of the amendment to the Labor Union and Labor Relations Adjustment Act, which is being discussed in the National Assembly solely by the opposition party.

KAIA is a coalition of the automobile industry, including the Korea Automobile Industry Association, Korea Automobile Industry Cooperative, Automotive Parts Industry Promotion Foundation, Korea Automotive Technology Institute, Korean Society of Automotive Engineers, Hydrogen Convergence Alliance, Korea Autonomous Driving Industry Association, Hyundai-Kia Cooperation Association, Korea GM Cooperation Association, and Ssangyong Cooperation Association.

KAIA pointed out, "The opposition party’s amendment under discussion in the National Assembly expands the concept of employer under the Labor Union Act to forcibly require collective bargaining between contractors who have no employment contract relationship and subcontractor workers," adding, "It also broadens the concept of labor disputes to legalize currently illegal strikes such as political strikes, while limiting the employer’s right to claim damages for losses caused by illegal strike actions."

KAIA predicted that if the amendment is enacted, the instability in labor-management relations, which acts as an obstacle to the development of Korea’s automobile industry due to repeated strikes every year, will worsen. They also expressed concern that it would bring about an era of labor-management chaos with rampant strikes and occupations at a time when the industry is transitioning to the future car era without adequate preparation. The association emphasized, "The automobile industry, which has developed through an organic cooperative production system centered on finished vehicles, will clearly lose global competitiveness significantly due to frequent labor disputes and intensified labor-management conflicts caused by a complex and multifaceted collective bargaining structure."

KAIA stated, "This is a crucial time to overcome the crisis facing the automobile industry and strengthen the competitiveness of Korea’s automobile industry in the global market," and explained, "We strongly urge the suspension of the legislative process of the amendment to the Labor Union Act, which will clearly only cause confusion in labor-management relations."