FKI "Regret Over Passage of Labor Union Act Amendment Causing Investment and Employment Contraction... Suspension of Discussions"

"Restriction on Claim for Damages, Concerns over Property Rights Infringement"

[Asia Economy Reporter Moon Chaeseok] The Federation of Korean Industries (FKI) issued a statement opposing the passage of the "Yellow Envelope Act" (Amendments to Articles 2 and 3 of the Labor Union Act) through the plenary session of the National Assembly's Environment and Labor Committee (Environment and Labor Committee).

On the 21st, the FKI, under the name of Economic Headquarters Director Choo Kwang-ho, stated in the position paper, "Despite many concerns from various sectors, we deeply regret that the Labor Union Act amendment was passed solely by the opposition party in the plenary session of the Environment and Labor Committee."

They predicted an increase in illegal strikes. The FKI said, "Expanding the concept of employers to allow subcontractor unions to engage in disputes against primary contractors and broadening the scope of labor disputes will intensify conflicts between labor and management and lead to widespread strikes."

On the other hand, they pointed out that corporate defense measures are insufficient. The FKI noted, "Limiting the right to claim damages for illegal acts not only contradicts the existing illegal act system but also risks infringing on corporate property rights."

Jeon Hae-cheol, Chairman of the Environment and Labor Committee of the National Assembly, is presiding over the full committee meeting held at the National Assembly in Yeouido, Seoul on the 21st. Photo by Hyunmin Kim kimhyun81@

They also highlighted the possibility of investment and employment contraction. The FKI said, "Countries are fiercely competing to create a business-friendly environment to attract investment," adding, "Discussions on amending the Labor Union Act that suppress investment and employment and dampen corporate motivation must be stopped."

The amendment to the Labor Union Act includes expanding the scope of possible union strikes and the range of employers required to engage in collective bargaining. It also contains provisions limiting companies' claims for damages related to strikes and other labor disputes.

The bill has been referred to the Legislation and Judiciary Committee. After the People Power Party walked out of the Environment and Labor Committee meeting room, the bill was effectively passed solely under opposition party leadership. Including the chairperson of the Environment and Labor Committee, among the 16 members, the Democratic Party has 9 members and the Justice Party has 1 member, which combined constitute a majority.