[EXPLAINER] Strike threat by major union spotlights demands over how to define workers, employers - The Korea Times

EXPLAINER Strike threat by major union spotlights demands over how to define workers, employers

Leaders of the Korean Confederation of Trade Unions raise their fists during a press conference at its headquarters in Seoul, July 2. Yonhap

Leaders of the Korean Confederation of Trade Unions raise their fists during a press conference at its headquarters in Seoul, July 2. Yonhap

KCTU pushes for broader worker protections; business leaders urge caution

The Korean Confederation of Trade Unions (KCTU), one of the country’s two largest labor groups with over a million members, is threatening a nationwide general strike Wednesday in an effort to pressure lawmakers to revise a key labor law at the heart of its demands.

At a press conference earlier this month, KCTU representatives said their top demand is the revision of Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, calling the changes essential to achieving what it described as “labor justice.”

What’s at stake?

Currently, an employer is legally defined as “a business owner, a person responsible for the management of a business or a person who acts on behalf of a business owner with regard to matters concerning workers in the business.”

The KCTU seeks to expand the definition. A bill, proposed last month by 43 liberal legislators, mostly of the ruling Democratic Party of Korea, would include not only employers who hire workers directly but also entities with “de facto control” over working conditions ― such as parent companies in subcontracting arrangements.

The bill also aims to allow platform workers, freelancers and other nonstandard workers to join unions and engage in collective bargaining.

The proposed amendments would significantly restrict employers from seeking damages against workers for losses stemming from workplace disputes, including strikes or work refusals carrying out union decisions.

The KCTU argues that the revision is essential to shield workers from punitive lawsuits, hold de facto employers like platform companies accountable, expand union rights to all categories of workers and bring Korea's labor law in line with International Labour Organization standards.

Delivery workers hold a rally supporting the Korean Confederation of Trade Unions' strike plan, in Seoul, Thursday. Newsis

Concerns and criticism

Business groups warn that broadening the definition of “employer” would force many large companies into constant negotiations with multiple subcontractor unions, driving up administrative and legal costs. They argue that the most affected sectors would be those with complex subcontracting structures, such as manufacturing and construction.

By making it harder for employers to claim damages, critics argue the law could embolden more frequent or prolonged strikes, as the financial risks for workers would be significantly reduced.

Some warn that the changes could erode Korea’s labor competitiveness, negatively affecting business operations and the country's appeal to foreign investors.

In a report published last year, Cha Jin-a, a professor at Korea University School of Law, said that the proposed reforms could undermine employers’ legal and constitutional rights. She warned that an excessively broad and ambiguous definition of a “worker” could trigger frequent legal disputes and violate the constitutional principle of clarity.

“While it is possible to moderately expand the scope of workers and employers to ensure the substantive protection of the three basic labor rights, the excessive expansion of the employer concept … as well as allowing non-workers to join unions constitutes a violation of the principle of clarity, a Constitutional principle,” Cha wrote. “Such drastic changes, made without any consideration of their ripple effects, are likely to result in far greater harm than benefit.”

In a statement released Monday, the Korea Enterprises Federation, which represents the collective interests of Korean businesses, expressed regret over the KCTU’s plan to hold a general strike.

Kim Young-hoon, nominated as labor minister by President Lee Jae Myung, has signaled firm support for the reforms.

Speaking to reporters on June 25, Kim, a former KCTU chief, described the introduction of the so-called “Yellow Envelope Law” — a contentious labor bill aimed at limiting companies’ ability to seek hefty damages from striking unions and expanding who can engage in collective bargaining — as “a path that must be taken, not a matter of choice.”

Following his confirmation hearing, scheduled for Wednesday at the National Assembly, Kim is expected to push forward with efforts to finalize the legislative bill in collaboration with lawmakers.

Jung Min-ho

Jung Min-ho has worked as a staff writer at The Korea Times since 2012, mostly covering social and political issues. He currently belongs to the Politics & City Desk where he covers topics such as health, labor and human rights. Prior to joining the team, he was responsible for covering North Korea and sports. His article about a biosecurity breach of Middle East respiratory syndrome won him an award from the Korea Science Journalists Association in 2016. He is also the co-author of the book, "Medical Pioneers of Korea" (2019). He served as the head of the international relations committee at the Journalists Association of Korea from 2021 to 2023.

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