Joint Statement by Six Economic Organizations Opposing the Amendment of the Labor Union Act

KCCI and Others Say "Review of Amendment Bill Must Be Suspended"

[Asia Economy Reporter Oh Gyumin] The Korea Employers Federation, along with the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, the Korea International Trade Association, the Korea Federation of Small and Medium Business, and the Korea Association of Mid-sized Enterprises, collectively known as the six economic organizations, have expressed opposition to the amendment of the Labor Union Act.

They announced this stance on the 13th at 2:30 PM at the Press Center in Jung-gu, Seoul, by issuing a ‘Joint Statement Opposing the Amendment of the Labor Union Act.’ This statement was made to clearly express the economic sector’s opposition as the opposition party, despite the ruling party’s resistance, is pushing forward the forced passage of the labor union law amendment bill by leveraging its majority power.

The six economic organizations stated in their declaration, “If the amendment passes, the foundation of our country’s legal system will be shaken, and labor-management relations will reach an irreparable breakdown.”

They continued, “The labor sector and some political circles have repeatedly made claims that undermine the rule of law and disregard constitutional values and the basic principles of civil law, focusing solely on protecting the three labor rights while ignoring the original purpose of the Labor Union Act, which is to maintain industrial peace and promote national economic development.”

Regarding the indiscriminate expansion of the concepts of workers, employers, and laborers, they opposed it, stating, “It will degrade corporate competitiveness and national competitiveness.” Their explanation is that in such a case, professionals or self-employed individuals could also establish labor unions, and their collusive acts would be protected under the Labor Union Act.

Not related to this article. / Photo by Dongju Yoon doso7@

Lee Dong-geun, the full-time vice chairman of the Korea Employers Federation, argued, “If the concept of employers subject to criminal punishment under the Labor Union Act is indiscriminately expanded to unclear and unpredictable scopes such as ‘de facto influence’ and ‘substantial control,’ it would violate the principle of legality, deny the substance of civil law contracts in the form of consignment arising from business division and specialization, and ultimately converge into a labor market centered on large corporations.”

He also claimed, “In particular, the expansion of the concept of labor disputes would allow strikes over highly managerial decisions, ongoing litigation cases, and political issues, causing industrial sites to be engulfed in disputes 365 days a year, ultimately worsening corporate management and the national economy.”

They also expressed concern about the exemption of liability for damages for illegal acts committed by labor unions. According to a recent survey by the Korea Employers Federation, 80.1% of the public oppose limiting liability for damages related to illegal strike actions.

Meanwhile, the amendment to the Labor Union Act is scheduled to be discussed on the 15th at the National Assembly’s Environment and Labor Committee’s Employment and Labor Law Review Subcommittee.