[Reporter’s Notebook] Labor Minister Focused Only on Deflecting Business Concerns

Concerns Over Labor Losses From the Yellow Envelope Law
Business Voices on Grace Period and Supplementation Must Be Reflected

"It was difficult to speak candidly. Whenever concerns were raised by the business community, Minister of Employment and Labor Kim Younghoon immediately stepped in to defend the government." (Participant at the September 3 meeting of chief human resources officers from major companies)

On September 3, sixteen labor affairs executives from major conglomerates gathered at the Korea Press Center. This meeting was convened after the amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act-commonly known as the Yellow Envelope Law-passed both the National Assembly and, most recently, the Cabinet meeting. The government aimed to explain the details, while companies wanted to voice their concerns. Despite the lengthy discussion reminiscent of a "100-Minute Debate," the business community left empty-handed.

The meeting proved unproductive because Minister Kim did not appear willing to genuinely listen to the concerns of the business sector. When participants expressed worries about labor losses due to strikes, Minister Kim deflected by saying, "Labor losses caused by industrial accidents are a more pressing concern." Regarding fears that the Yellow Envelope Law could derail the MASGA (Make American Shipbuilding Great Again) project, he responded, "The competitiveness of the shipbuilding industry starts with skilled workers," and added, "We will actively work to bring back skilled workers and create good jobs for young people." This evasive answer only fueled the sentiment that "the government does not seem willing to listen." This was far from the original purpose of the meeting, which was to directly communicate specific concerns to the government and seek answers.

From the outset, there were numerous complaints that the business community's opinions were not reflected at all in the legislative process of the Yellow Envelope Law. Even when business leaders agreed to accept some provisions in a forward-looking manner, the problematic clauses remained unchanged. Their proposal for a "one-year grace period" to allow for thorough preparation before the law's implementation was also rejected.

If the Ministry of Employment and Labor continues to adhere to its predetermined stance, the burden will inevitably fall on companies. Even if guidelines and manuals are prepared, there will be situations where they cannot be applied. This could lead to legal disputes.

The fact that guidelines are not a cure-all has already been demonstrated in the past. In September 2012, the Ministry of Employment and Labor established guidelines for calculating ordinary wages, excluding regular bonuses and fixed welfare benefits from the calculation. Companies faithfully followed these guidelines, but labor unions did not accept them and frequently took the matter to court. In the end, the courts consistently ruled in favor of the labor unions, and in December 2013, the Supreme Court's full bench overturned the government guidelines. Relying on government guidelines led to confusion, as well as wasted time and resources. At the very least, when preparing guidelines and manuals to supplement the Yellow Envelope Law, the opinions of the business community must be thoroughly reflected.