Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Business leaders call on president to veto pro-labor bill
Korea Enterprises Federation Chairman Sohn Kyung-shik, third from left, speaks during a press conference at the Korea Press Center in Seoul, Monday, to condemn the passage of a bill to revise the Trade Union and Labor Relations Adjustment Act. From left are Korea Chamber of Commerce and Industry Executive Vice Chairman Woo Tae-hee, Federation of Middle Market Enterprises of Korea Chairman Choi Jin-sik, Sohn, Korea Federation of SMEs Chairman Kim Ki-mun, Federation of Korean Industries Vice Chairman Kim Chang-beom and Korea International Trade Association Director Kim Ko-hyun. Yonhap
By Park Jae-hyuk
'Yellow envelope bill' criticized as disastrous for Korean industries
Korea’s six largest business lobbies held a press conference, Monday, condemning the passage of a bill at the National Assembly last Thursday for labor-friendly revisions to the Trade Union and Labor Relations Adjustment Act.
They urged President Yoon Suk Yeol to exercise his veto against the pro-labor bill, to prevent the collapse of the Korean economy and industries.
The proposed bill justifies strikes by subcontracted workers against their employers’ clients, despite the fact that the clients do not employ those workers directly. In addition, management will be banned from demanding compensation for damage stemming from illegal strikes, unless they assess the damage caused by each individual.
“The only way to prevent the economic crisis that the bill may bring is through the president’s veto power,” the business lobbies said in a joint statement.
The revised act was dubbed the “yellow envelope bill,” as yellow envelopes of cash were delivered in 2014 to support unionized workers ordered by a court to pay a combined 4.7 billion won ($3.5 million) to SsangYong Motor in compensation for their strike in 2009.
Due to the strong protest from business leaders, the revised bill was not passed in the previous two assemblies between 2012 and 2020.
However, the main opposition Democratic Party of Korea (DPK) and other opposition parties eventually passed the bill last week, as the ruling People Power Party’s (PPP) lawmakers refused to vote to protest the liberal opposition parties that hold the majority in the 300-seat National Assembly.
“Those who will face the biggest damage from the bill will be the employees of small- and medium-sized enterprises and future generations,” the business lobbies said.
They warned that workplaces will be embroiled in labor disputes throughout the year. They also emphasized that it is impossible for management to assess the damage caused by each individual, as unionized workers tend to wear masks and cover surveillance cameras during strikes.
Members of Korea's two largest umbrella unions chant during a press conference in front of the presidential office in Seoul, Monday, to call for the immediate proclamation of the revised Trade Union and Labor Relations Adjustment Act. Yonhap
PPP Chairman Kim Gi-hyeon supported the business lobbies, asking Yoon to exercise his presidential veto.
“The main purpose of the DPK’s attempt to pass the bill that can deal a severe blow to our economy is to win the election,” he said during Monday’s meeting of the conservative party’s leaders.
Minister of Employment and Labor Lee Jung-sik also hinted last Thursday that the president may veto the bill.
In response, opposition parties urged the president to stop abusing his veto power.
Korea’s two largest umbrella unions also held a press conference in front of the presidential office, Monday, to call for the immediate proclamation of the revised Trade Union Act.