Labor Relations Commission Gets Only 50 Additional Staff... Expertise and Independence Put to the Test [Will the Yellow Envelope Law Be Implemented Smoothly?] ②

Labor Relations Commission Holds the Key to the Yellow Envelope Law
41% Surge in Cases per Investigator
Staff Increase Essential, but Only 50 Added
Quasi-Judicial Body Still Subject to Government Influence
Expertise Needed to Address D

With just four months remaining until the implementation of the Yellow Envelope Act (the amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), the burden on the Labor Relations Commission is growing. The commission is expected to play a key role in determining bargaining structures between original contractors and subcontractors, as well as in the separation of bargaining units. However, a lack of personnel and expertise, combined with its institutional vulnerability to government influence, is hampering the commission's ability to function effectively. The number of additional staff requested from the Ministry of the Interior and Safety stands at only 50-half of the 100 requested by the Ministry of Employment and Labor. There are growing concerns that the Labor Relations Commission, which is responsible for mediating labor-management negotiations, may not be able to fulfill its role properly due to excessive workload.

According to The Asia Business Daily's coverage on November 26, the Ministry of the Interior and Safety has decided to increase the Labor Relations Commission's workforce by 50 in preparation for the implementation of the Yellow Envelope Act. Previously, the commission had requested an increase of about 100 investigators to address the shortage, but only half of that request was accepted. Although this figure represents 20% of the commission's total of 250 investigators-a significant proportion-most believe it is insufficient, given the anticipated surge in workload. If these additional personnel are evenly distributed among the Central Labor Relations Commission and the 12 regional commissions, each would receive fewer than four new staff members.

The most significant change brought by this amendment to the Enforcement Decree of the Labor Union Act is the 'separation of bargaining units.' Previously, in cases of multiple unions, it was mandatory to unify bargaining channels, and the separation of bargaining units was only allowed in exceptional cases. However, the amendment now allows the commission to decide on the separation of bargaining units or approve joint bargaining under certain conditions. This inevitably strengthens the role of the commission, as it will effectively serve as the 'final decision-maker' if labor and management fail to reach a voluntary agreement.

The challenge is that when working conditions, job types, and union organizational structures differ by site, the volume of information and the level of responsibility required for the commission's decisions increase dramatically. Lee Junhee, a professor at Kwangwoon University School of Law, stated, "For the commission to fulfill its role properly, the basics must be addressed first. The organization and staffing are already small, and once the Yellow Envelope Act is implemented, the workload will increase even further." He emphasized, "This is not an issue that the commission can solve on its own. The expansion of the organization must be supported at the government-wide level."

In reality, the number of investigators at the commission has not kept pace with the increasing number of cases. According to the office of Assemblywoman Cho Jiyeon of the People Power Party, a member of the National Assembly's Climate, Energy, Environment, and Labor Committee, the number of cases filed with the commission rose by 36% in three years, from 17,583 in 2021 to 23,963 last year. The average number of cases assigned to each investigator surged by 41%, from 82.5 to 116.3. Even within the commission, there are concerns that, unless sufficient personnel are secured before the Yellow Envelope Act takes effect, a surge in lawsuits and case backlogs will become a reality.

Kim Younghoon, Minister of Employment and Labor, is holding a briefing on the partial amendment of the Enforcement Decree of the Labor Union Act at the Government Seoul Office in Jongno-gu, Seoul, on the 24th.

The limitations on the commission's independence are also cited as a problem. The Labor Relations Commission is known as a quasi-judicial body that serves as the first-instance adjudicator for labor disputes before they reach the courts. With the latest amendment, the commission's neutral mediation and decision-making roles have become even more important. However, as an administrative body under the Ministry of Employment and Labor, the commission is structurally vulnerable to government influence. The fact that the chairperson is a political appointee and that public interest members are appointed by the president further heightens these concerns. Currently, the Central Labor Relations Commission consists of 41 members each recommended by labor and management, and 65 public interest members appointed by the government.

Securing expertise is another challenge. Starting in March next year, the commission must resolve labor-management bargaining disputes arising across a wide range of industries. However, as the industrial structure shifts from manufacturing to sectors such as platforms, IT (information technology), and logistics, it has become increasingly difficult to rely solely on existing legal precedents. There are also concerns about disparities in industry expertise among regional commissions. A labor union official commented, "There will be an increase in cases requiring complex knowledge of labor-management relations, such as the characteristics of original contractor-subcontractor contracts. Whether investigators' expertise can keep up with this demand will be key."

The Ministry of Employment and Labor plans to reduce confusion by preparing manuals on criteria for determining employer status, the scope of labor disputes, and bargaining procedures by the end of the year. The commission is also working to address these issues by conducting internal training and discussions before the guidelines are finalized. The 50 additional staff members to be hired will be assigned mainly to departments handling Yellow Envelope Act-related work. However, as both labor and management are pushing back against the government's policy, confusion in the field is expected to persist for the time being. Some even worry that the commission could become a catalyst for increased social conflict.

Oh Gyetaek, Head of the Labor Relations Research Division at the Korea Labor Institute, pointed out, "It is difficult for the Ministry of Employment and Labor to include detailed, industry-specific guidelines in manuals. Ultimately, the commission will have to make legal judgments on each case, and if either labor or management is dissatisfied, the matter will inevitably go to court." He added, "The commission was established to reduce the time and cost of litigation, but if conflict intensifies as cases pass through the commission, criticism is likely to follow."