Mid-sized Companies Say "No Means to Counter Excessive Labor Power"

Commentary on the Passage of the Labor Union Act Amendment in the National Assembly

The amendment to Articles 2 and 3 of the Labor Union and Labor Relations Adjustment Act (the "Yellow Envelope Act") passing the National Assembly plenary session was criticized by the mid-sized enterprise sector as "a symbol of insensitivity and irresponsibility that completely ignores the deteriorating global economic situation and the reality of our economy."

The Korea Federation of Mid-sized Enterprises (KFME) issued a statement on the 9th, saying, "Despite various criminal penalties possible under the Labor Union Act, the Yellow Envelope Act expands the scope of employers with unclear responsibility and deprives all means to respond to excessive labor power, which will severely shrink corporate management and result in eroding the vitality of our entire industry."

Furthermore, KFME pointed out, "Instead of continuing the practice of weakening the flexibility and elasticity of labor-management relations solely through legislation, detached from the realities of the workplace, we must seek a transition to an advanced country-type system that clearly reflects the changing nature of worker-employer relations in line with the times and maximizes the autonomy of labor-management relations."

The industry also expressed concern that the ruling party's hasty passage of the amendment alone, despite its significant impact on the industrial ecosystem, will fundamentally call into question the status and value of the National Assembly as a forum for social deliberation and discussion for the nation and its people.

KFME emphasized, "As a key actor responding to numerous challenges such as global industrial restructuring, supply chain instability, and the climate crisis, all sectors must pool wisdom to urgently pursue progressive measures by the government and National Assembly, including the president's veto power, to ensure that corporate innovation will is not completely dismantled, and to seek reasonable ways to foster cooperative labor-management relations through longer-term social discussions."