Yellow Envelope Act, Rapid Progress After Democratic Party's Official Adoption... Opposition Erupts Nationwide

Concerns Raised Over Difficulty in Individually Proving Illegal Strikes
People Power Party Plans to Respond with Filibuster in Plenary Session

The 'Yellow Envelope Act' (Amendments to Articles 2 and 3 of the Labor Union Act) passed through the National Assembly's standing committee less than two weeks after the Democratic Party of Korea adopted it as a party policy. The Democratic Party plans to pass the Yellow Envelope Act through the plenary session within this week, but opposition is emerging in various places.

National Assembly Environment and Labor Committee holds legislative hearing on the Yellow Envelope Act
[Image source=Yonhap News]

On the 22nd, the National Assembly's Environment and Labor Committee, immediately after concluding the confirmation hearing for Kim Wan-seop, the nominee for Minister of Environment, put the Yellow Envelope Act on the agenda during a full meeting. Members of the People Power Party protested the agenda setting of the Yellow Envelope Act and left the meeting room. Subsequently, the Yellow Envelope Act was passed in the Environment and Labor Committee without objection, led by opposition party members. Ahn Ho-young, chair of the Environment and Labor Committee, explained, "The Yellow Envelope Act has been discussed for a long time, including during the 21st National Assembly. It is the National Assembly's natural duty to find ways to guarantee labor rights and contribute to the livelihood economy."

The Yellow Envelope Act is expected to pass the plenary session of the National Assembly on the 25th. The Democratic Party is expected to hold a meeting of the Legislation and Judiciary Committee the following day to approve the Yellow Envelope Act before sending it to the plenary session. The Democratic Party adopted the Yellow Envelope Act as a party bill on the 11th and is processing it in the National Assembly within two weeks. Kang Yoo-jung, the Democratic Party's floor spokesperson, told reporters at the National Assembly on the 21st, "On the 25th plenary session, we will pass the four broadcasting laws, the 250,000 won livelihood recovery support law, and the Yellow Envelope Act."

Although the Yellow Envelope Act is about to pass the National Assembly, concerns remain. If the original Yellow Envelope Act limits employers' claims for damages against union activities, there are concerns that it could infringe on property rights and management rights guaranteed by the Constitution. Additionally, the amendment added a phrase to Article 3 of the Labor Union Act stating that "each damage must have its scope of responsibility individually defined," but there are criticisms that it is difficult to prove damages individually caused by joint illegal acts.

For these reasons, opposition continues. Lee Jeong-sik, Minister of Employment and Labor, said right after the Yellow Envelope Act was approved the day before, "(The Yellow Envelope Act) will increase uncertainty in industrial sites and undermine legal stability," adding, "If legislation reflecting only one-sided positions becomes reality, it will cause confusion and conflict in industrial sites, and the costs of unstable labor-management relations will ultimately be borne by the people." The business community also expressed regret. The Korea Employers Federation stated in a press release the day before, "The Yellow Envelope Act effectively blocks claims for damages against illegal strike actions, encouraging extreme illegal strike actions," and "The National Assembly should stop discussions on amendments to the Labor Union Act even now."

The People Power Party plans to respond to the ruling party's forced legislation of contentious bills, including the Yellow Envelope Act, with unlimited debate (filibuster). Choo Kyung-ho, floor leader of the People Power Party, said at a floor strategy meeting held at the National Assembly on the same day, "(The Yellow Envelope Act) is an anti-business law that destroys the national economy," adding, "It is a law that even the Moon Jae-in administration gave up on pushing through, but now the Democratic Party is recklessly pushing it through without labor-management-government agreement or bipartisan consensus." He continued, "The Democratic Party's attempt to force the bill after the regime change is to obstruct the current government's economic management and make the economy difficult."