Daegu Chamber of Commerce and Industry Survey of 444 Companies
Calls for Supplementary Measures Before Implementation
The Daegu Chamber of Commerce and Industry (Chairperson Park Yoonkyung) announced on the 16th that it conducted a survey on the impact of the Yellow Envelope Act amendment among 444 local companies.
According to the survey, 58.7% of respondents said that the amendment to the Yellow Envelope Act (Article 23 of the Trade Union and Labor Relations Adjustment Act) would have a "negative" impact on business management, making up the majority. In contrast, only 5.1% believed it would have a "positive" impact, while 36.2% responded that it would have "no impact," indicating that negative perceptions are predominant overall.
The most frequently cited reason for negative views of the Yellow Envelope Act was "an increase in strikes and labor disputes" (28.2%), followed by "increased legal risks and management costs" (26.2%), "higher costs and workforce for responding to labor-management negotiations" (25.5%), and "reduced hiring and investment in new personnel" (18.6%).
On the other hand, the most common reason for positive views was "improvement in labor relations between contractors and subcontractors" (33.3%), followed by "the ability to negotiate with employers who have substantial control" (23.8%), "prevention of indiscriminate damage lawsuits" (23.8%), "enhancement of labor-management trust" (14.3%), and "strengthening of the three labor rights (the right to organize, the right to collective bargaining, and the right to collective action)" (4.8%).
Among the amended provisions, "expansion of the definition of employer (strengthening the responsibility of principal employers)" was cited by 37.4% as having the greatest impact on business management. This was followed by "expansion of the scope of labor disputes (including management issues beyond working conditions)" (33.1%), "expansion of union membership eligibility (allowing non-employees to join unions)" (14.2%), and "restrictions on damage claims (limiting claims related to industrial action)" (13.0%).
Meanwhile, 68.1% of responding companies predicted that management costs would increase due to the implementation of the Yellow Envelope Act, while 31.9% expected "no change." Among those anticipating an increase in management costs, 25.2% expected an increase of "less than 5%," while 18.9% expected an increase of "5% or more but less than 10%."
As for countermeasures in response to the implementation of the Yellow Envelope Act, "strengthening labor-management relations management (expanding dialogue and negotiations, enhancing ongoing communication)" was the most common response at 33.0%. This was followed by "revising work rules and internal regulations" (26.9%), "expanding legal and labor consulting" (24.8%), "preparing risk management manuals" (9.7%), and "increasing the number of HR and labor specialists" (4.2%).
Regarding support desired from the government in relation to the implementation of the Yellow Envelope Act, "preparing supplementary legislation reflecting business realities" was the most requested at 45.4%. This was followed by "strengthening dispute mediation and arbitration functions" (24.6%), "providing legal interpretation materials and guidebooks" (10.6%), "supporting labor-management coexistence programs" (10.0%), and "holding practical training and briefing sessions" (9.1%).
Lee Sanggil, Executive Vice Chairman of the Daegu Chamber of Commerce and Industry, stated, "It is urgent to actively collect feedback from the business field and prepare practical supplementary measures before the law takes effect in March next year." He added, "We need to hold practical training and briefing sessions to help companies smoothly adapt to the new regulations, and strengthen substantial support such as tailored legal and labor consulting."
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