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

Korea Employers Federation and Chambers of Commerce Unite
"Labor-Management Relations Foundation Collapsing... Legislation Must Be Halted"

The business community has issued a joint statement urging the suspension of legislation on the amendment to the Labor Union Act, commonly known as the ‘Yellow Envelope Act’.

On the 2nd, six major economic organizations including the Korea Employers Federation, the Korea Chamber of Commerce and Industry, the Korea International Trade Association, the Korea Business Association, the Korea Federation of Small and Medium Business, and the Korea Federation of Medium-sized Enterprises held a press conference at the National Assembly, stating, "The amendment to the Labor Union Act indiscriminately expands the scope of workers, employers, and labor unions, undermining the foundation of labor-management relations," and demanded the suspension of the amendment’s legislation. The announcement was attended by Son Kyung-sik, chairman of the Korea Employers Federation, Choi Jin-sik, chairman of the Korea Federation of Medium-sized Enterprises, and vice chairpersons of each organization.

Press conference urging the passage of the Labor Union Act amendment held last month in front of the National Assembly main building
[Photo by Yonhap News]

Employers’ organizations, labor groups, and ruling and opposition parties are showing intense confrontation over the processing of the amendment to the Labor Union Act, known as the Yellow Envelope Act. The bill was previously vetoed by the president and discarded in the last National Assembly but is now being rapidly pushed forward in the new National Assembly.

In the statement, the six economic organizations argued, "If the amendment is realized, everyone including self-employed individuals will be able to organize labor unions and demand negotiations with their desired counterparts on almost all agendas and go on strike," adding, "This will lead to constant labor disputes."

They continued, "In a situation where multiple criminal penalties exist for employers under the Labor Union Act, the unclear definition of employers violates the principle of legality and clarity in criminal law, turning businesspeople into potential criminals and stifling business activities," emphasizing, "If companies do not know which unions to negotiate with and face criminal penalties for refusing negotiations, foreign-invested companies will leave the domestic market."

At the emergency press conference opposing the amendment to the Labor Union Act held on the 25th of last month, Lee Dong-geun, Vice Chairman of the Korea Employers Federation, is delivering the opening remarks.
[Photo by Yonhap News]

They predicted that illegal acts at some strike sites, which already exist, are likely to worsen if the amendment is passed. The organizations claimed, "The amendment virtually blocks claims for damages caused by illegal strike actions, encouraging illegal strikes and infringing on constitutional property rights," warning, "If claims for damages are completely blocked, the industrial field will become lawless."

They added, "It is feared that this will shake the basic principles of the Constitution and Civil Code, and even the labor-management legal system that we have built over the past decades, leading to the collapse of labor-management relations in Korea," and stated, "The greatest victims will be small and micro workers whose jobs are threatened and future generations."