Choo Kyung-ho: "The Yellow Envelope Act Violates the Constitution, Raises Concerns Over Escalating Labor-Management Conflicts"

Emergency Economic Ministers' Meeting at Government Sejong Complex
Choo "Please Discuss Again in the National Assembly"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering opening remarks at the Emergency Economic Ministers' Meeting held at the Government Complex Sejong on the 20th.

[Asia Economy Sejong=Reporter Song Seungseop] Deputy Prime Minister for Economy and Minister of Strategy and Finance Choo Kyung-ho emphasized on the 20th that the "Yellow Envelope Act" "violates constitutional and civil law principles and poses a very high risk of escalating labor-management conflicts, thus requiring fundamental reconsideration."

On the same day, Deputy Prime Minister Choo held an emergency economic ministers' meeting at the Government Complex Sejong and stated, "The 'Amendment to the Labor Union and Labor Relations Adjustment Act,' which was approved last week by the Environment and Labor Committee subcommittee of the National Assembly, includes provisions to expand the scope of employers and labor disputes and to limit claims for damages against illegal union activities."

The amendment mentioned by Deputy Prime Minister Choo mainly involves revisions to Articles 2 and 3 of the related law. If the law passes, claims for damages and provisional seizures against striking workers aimed at suppressing disputes will be restricted. It will become possible to engage in disputes not only over 'collective bargaining' issues such as wages but also over 'rights disputes' such as reinstatement of dismissed workers or layoffs. Additionally, the legalization of labor disputes by subcontracted workers against the primary contractor will be realized. The agenda was processed by a vote of Democratic Party and Justice Party members after members of the People Power Party left the Environment and Labor Committee subcommittee on the 17th.

Deputy Prime Minister Choo criticized, "(The Yellow Envelope Act) includes those who are not parties to the labor contract but substantially affect working conditions within the scope of employers," adding, "By ambiguously expanding that scope, it may violate the constitutional principle of legality and clarity in criminal law." He also pointed out, "Even disputes that should currently be resolved judicially, such as unfair labor practices and wage arrears, are forcibly included as labor disputes, raising concerns that labor-management conflicts will become more frequent."

Furthermore, Deputy Prime Minister Choo warned, "The amendment sets the scope of liability for damages according to each liable party for illegal acts by labor unions and exempts the liability of guarantors," adding, "This undermines the principle of joint liability for torts under civil law and may hinder victim protection." The principle he referred to is Article 760 of the Civil Act, which states that "if multiple persons jointly commit a tort causing damage to another, they are jointly liable for damages."

Deputy Prime Minister Choo also stated, "If the amendment is forcibly passed by the National Assembly, it is expected to increase social conflicts and uncertainties in the corporate field, causing serious negative repercussions on the national economy as a whole," and "there is unavoidable concern about the unilateral promotion of a bill that shakes the foundation of labor-management relations and has constitutional issues without sufficient consultation."

He urged, "The government requests that the National Assembly Environment and Labor Committee carefully reconsider and re-discuss the concerns from various sectors regarding the labor union law amendment at the full committee meeting on the 21st."