'Yellow Envelope Act' Passes Plenary Session Amidst Absence of Righteous Party... Opposition Calls It a "Long-cherished Wish of the Labor Sector" (Comprehensive)

Among 174 members present, 173 in favor, 1 abstention
People Power Party lawmakers walk out
Business community backlash "A bad law shaking the industrial ecosystem"

The amendment to Articles 2 and 3 of the Labor Union Act (the Yellow Envelope Act) passed the National Assembly plenary session on the 9th. While the opposition praised it as the fulfillment of a long-standing labor demand, the People Power Party and business circles opposed it, calling it a "malicious law that shakes the industrial ecosystem."

On the 9th, the partial amendment to the Labor Union and Labor Relations Adjustment Act was passed at the plenary session held at the National Assembly. Photo by Hyunmin Kim kimhyun81@

At the plenary session held at the National Assembly that day, the Yellow Envelope Act was passed with 173 votes in favor and 1 abstention out of 174 members present. The People Power Party did not participate in the vote, and the bill was processed under the leadership of the Democratic Party.

The Yellow Envelope Act includes provisions that allow parties who are not signatories to the labor contract but who have a position to substantially and concretely control and determine the working conditions of workers?such as the primary contractor?to be regarded as employers, and limits claims for damages related to labor disputes. The bill was proposed in the 21st National Assembly following the trial of the subcontractor union strike at Daewoo Shipbuilding & Marine Engineering. The Democratic Party directly referred the amendment, which had been stalled for a long time in the Legislation and Judiciary Committee after passing the Environment and Labor Committee, to the plenary session.

Jung Cheong-rae, a Supreme Council member of the Democratic Party, said to reporters after the passage of the Yellow Envelope Act, "The Yellow Envelope Act is a long-standing labor demand," and added, "It has great historical significance." He evaluated it as "an important law that guarantees workers' rights to unionize and strike, thereby improving the quality of life for our workers."

Hong Ik-pyo, floor leader of the Democratic Party, also said at the same venue, "I think a very meaningful law has been passed," and emphasized, "Again, the Yellow Envelope Act is not a law that induces strikes or is solely for unions, but a human rights bill that extends a hand to those whose basic rights and lives are on the brink."

Hong added, "In that regard, President Yoon Suk-yeol should not exercise a veto against this bill," and requested, "I ask the government and ruling party to approach this with an open attitude."

The Justice Party also welcomed the passage of the Yellow Envelope Act in the plenary session and urged the government and ruling party to "give up any cunning veto attempts." The Justice Party stated that the Yellow Envelope Act is "20 years after the self-immolation of Baedalho, a martyr of Doosan Heavy Industries who resisted a 6.5 billion won damage injunction in 2003," and urged the passage of the bill, saying, "We can neither wait any longer nor delay."

However, the People Power Party opposed the Democratic Party's forced passage that day, leaving the assembly and abstaining from the vote. The People Power Party had prepared a filibuster (unlimited debate to legally obstruct parliamentary proceedings) against the Yellow Envelope Act and the three broadcasting laws but canceled it at the last minute.

Yoon Jae-ok, floor leader of the People Power Party, told reporters after the party meeting, "Our party has decided not to filibuster." He said, "I ask the public to understand and support that we had no choice but to give up the filibuster to prevent the Democratic Party's bad political intention to impeach the chairman of the Korea Communications Commission and paralyze the functions of this state agency for a long time."

Meanwhile, business circles, which had been urging the suspension of the Yellow Envelope Act legislation, are expected to recommend that the president exercise veto power following the bill's passage under the Democratic Party's leadership.

The day before, six economic organizations?the Korea Employers Federation, the Korea Chamber of Commerce and Industry, the Korea Economic Association, the Korea International Trade Association, the Korea Federation of Small and Medium Business, and the Korea Federation of Medium-sized Enterprises?issued a joint statement at the National Assembly communication center urging the suspension of the Yellow Envelope Act legislation.

The six economic organizations said, "If the amendment passes, the industrial field will fall into extreme confusion, and companies will not be able to conduct business normally," and added, "Despite these appeals, it is heartbreaking that the opposition is forcing the bill's passage by leveraging their majority."

These organizations take issue with the amendment's definition of the employer as "a person who is in a position to substantially and concretely control and determine working conditions." They argue that the scope of employers will be indiscriminately expanded, making the primary contractor, who is not a party, subject to labor disputes, and if subcontractors demand negotiations with this employer, it will ultimately make business activities impossible.

They also claim, "Issues that should be resolved judicially, such as unfair dismissal, as well as managerial decisions like investment choices, could become targets of labor disputes," and "Even if unions commit illegal acts, damages cannot be claimed, leading to widespread labor disputes and illegal activities." They criticized the amendment as "a malicious law that destroys labor-management relations, shakes the industrial ecosystem to its roots, and threatens jobs for future generations."

Lee Dong-geun, full-time vice chairman of the Korea Employers Federation, mentioned, "If the bill is forcibly passed in the National Assembly, we plan to recommend that the president exercise veto power (request for reconsideration) on the amendment to the Labor Union Act."