President seeks to ease tensions over controversial labor law

President Lee Jae Myung sits next to Kim Dong-myeong, left, president of the Federation of Korean Trade Unions and Yang Kyeung-soo, right, president of the Korean Confederation of Trade Unions, during a luncheon meeting held at the presidential office in Seoul, Thursday. Yonhap

In an effort to ease tensions over the recently passed "yellow envelope law," a pro-labor bill at the center of ongoing labor-management disputes, President Lee Jae Myung hosted leaders of the country’s major labor unions on Thursday, emphasizing that his government’s approach is rooted in basic human rights rather than a pro-labor or anti-business agenda.

Lee emphasized that a society that respects labor and a country favorable to business “are not mutually exclusive, but can and must coexist,” underscoring that the new law is not intended to confront companies.

The law is highly controversial because it restricts a company’s ability to sue striking workers for damages. While businesses fear it will embolden unions and lead to costlier strikes, supporters argue it is a vital measure to protect workers from devastating lawsuits, highlighting a deep-seated friction between labor and management.

During the meeting, Lee welcomed Federation of Korean Trade Unions (FKTU) President Kim Dong-myeong and Korean Confederation of Trade Unions (KCTU) President Yang Kyeung-soo, urging both labor and management to engage in dialogue to resolve misunderstandings and reconcile differing positions through discussions.

“Recently, I’ve spoken often about workplace accidents and delayed wage payments, and some claim I am biased toward labor,” the president said during the meeting. “But I don’t see it that way. Issues like unpaid wages or industrial accidents are about life and livelihood; framing them as pro-labor or pro-business misses the point.”

Explaining the purpose of the meeting, Lee noted that while he has frequently met with business leaders, he had not yet held similar talks with labor organizations. He reiterated that “companies cannot exist without considering workers” and urged unions to recognize that “amending the labor law should not unfairly disadvantage employers.”

President Lee Jae Myung holds hands with Kim Dong-myeong, left, president of the Federation of Korean Trade Unions, and Yang Kyeung-soo, right, president of Korean Confederation of Trade Unions, during a luncheon meeting held at the presidential office in Seoul, Thursday. Yonhap

Lee also directly appealed to the KCTU, which has so far refused to participate in a government-led tripartite body, composed of representatives from business, labor and the government. Until now, only the FKTU has taken part in the discussions.

“Our society is deeply plagued by distrust, lack of communication and insufficient dialogue,” Lee said. “Real conversations must happen, whether they end in agreement or conflict, and that starts with sitting down together.”

KCTU head Yang Kyeung-soo, while not directly responding to Lee’s call to join the tripartite group, said that the union made the tough decision to join another dialogue body led by the National Assembly.

"The KCTU yesterday decided to participate in the National Assembly-led social dialogue. It was not an easy decision, but the union views it as a first step toward building trust between the government and workers, and establishing a new framework for labor-government relations," Yang said, while also criticizing past social dialogue mechanisms for having devolved into tools to advance and justify government positions.

Meanwhile, the FKTU president urged the president to convene key economic actors, aiming for a broad social compromise.

"The FKTU proposes that the president personally convene all key economic actors for a period of deliberation, and within that framework, declare a broad social compromise. The FKTU pledges to fully assume all social responsibilities throughout this process and in the decisions made," he said.

The luncheon meeting came as business and labor groups sharply diverge over the National Assembly’s passage of the bill in late August. It amended Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, allowing labor unions larger leverage in collective bargaining and labor-management negotiations, and is set to come into effect in February.