People Power Party Proposes Supplementary Bill to Yellow Envelope Act: "Ensuring Employers' Right to Defend"

Ban on Illegal Occupation of Workplaces by Unions
Allowing Substitute Workers During Strikes

The People Power Party has introduced a supplementary legislative bill to the Yellow Envelope Act (the amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), which prohibits illegal occupation of workplaces by labor unions and allows the use of substitute workers during strikes. Although the path to legislation remains long, given the party's limited number of seats in the National Assembly, discussions on the matter are expected to continue, in line with calls both inside and outside the political sphere for amendments to the Yellow Envelope Act.

On September 4, Eunhye Kim, Deputy Floor Policy Leader of the People Power Party, sponsored the "Fair Labor-Management Act" (partial amendment to the Trade Union and Labor Relations Adjustment Act). The amendment explicitly prohibits any illegal occupation of all facilities within a workplace under Article 42, which already bans violent or destructive acts by unions. The current Article 42 prohibits strikes occupying "facilities related to production or other major work, or facilities specified by Presidential Decree as equivalent," but there have been ongoing criticisms that the scope of this provision is ambiguous.

Eunhye Kim, Deputy Floor Leader for Policy of the People Power Party. Provided by the office of Representative Eunhye Kim

The bill also includes provisions allowing employers to hire substitute workers during labor disputes. Specifically, it proposes deleting Article 43, which currently prohibits employers from hiring or substituting workers to perform work suspended during a strike. This has been a longstanding demand from the business community as a supplementary measure to the Yellow Envelope Act. Concerns have been raised that if the Yellow Envelope Act is implemented, companies would be unable to replace work with other subcontractors during a subcontractor strike, potentially resulting in significant losses.

The amendment aims to institutionalize the employer's right to defend their business, in order to prevent chaos in industrial sites that could arise from the forced implementation of the Yellow Envelope Act. The People Power Party has previously stated its intention to push for supplementary legislation to the Yellow Envelope Act during the regular National Assembly session, which runs until December 9, 2025. As there are concerns that business activities could be restricted if the Yellow Envelope Act goes into effect as is in March of next year, the party emphasizes the need for a proactive response. Deputy Floor Policy Leader Kim stated, "After the passage of the Yellow Envelope Act, companies will face a situation where they are either hit with a flood of lawsuits if they do not respond, or are forced to consider relocating factories or moving capital abroad. The Fair Labor-Management Act is the minimum supplementary legislation needed to protect not only companies, but all workers and the community as a whole."

Meanwhile, party leaders including Representative Donghyuk Jang, Floor Leader Eonsuk Song, and Policy Committee Chair Doeup Kim, are scheduled to visit the American Chamber of Commerce in Korea (AMCHAM) for a meeting on this day. They plan to listen to opinions on the Yellow Envelope Act and the proposed amendments to the Commercial Act, and to develop strategies for the regular National Assembly session. AMCHAM has previously expressed concerns that the Yellow Envelope Act would negatively impact Korea's investment attractiveness and overall business environment.