Subcontractor unions ramp up demands after passage of ‘yellow envelope law’
Subcontractor unions across Korea have intensified their demands for greater accountability and direct negotiations from parent companies after the passage of the so-called “yellow envelope bill,” a pro-labor law intended to expand union rights and redefine employer obligations. The legislation, scheduled to take effect in six months, will expand the definition of “employer” to an entity that “substantially controls” the working conditions of subcontracted workers. Even before its implementation, the law has already triggered a flurry of action by subcontractor unions nationwide and prompted concerns from the business sector. On Wednesday, more than 1,800 workers employed by subcontractors of Hyundai Steel, the nation’s second-largest steelmaker, filed a criminal complaint with the prosecution, accusing management of conducting unfair labor practices, including unlawful subcontracting. “Despite the Ministry of Employment and Labor’s direct employment order in 2021 and the court ruling issued in favor of it in 2022, Hyundai Steel has failed to rectify its unfair labor a
