Businesses protest passage of 'yellow envelope' bill by Assembly committee

The Korea Times

The Korea Times

Business

Sat, September 30, 2023 | 01:32

Companies

Businesses protest passage of 'yellow envelope' bill by Assembly committee

Posted : 2023-02-21 17:07

Updated : 2023-02-21 17:32

Members of the minor opposition Justice Party celebrate the passage of the so-called ''yellow envelope' bill during a press conference in front of the National Assembly, Tuesday. Yonhap

By Lee Kyung-min

Business associations expressed deep concern, Tuesday, over the opposition-led passage of the so-called "yellow envelope" bill, which limits employers' claims for compensation against losses caused by labor strikes.

Critics say the bill will encourage irresponsible and reckless collective actions by the country's labor unions.

Korea's militant labor unions have been and will continue to be the primary and strongest deterrent to foreign investors who otherwise would not hesitate to commit to long-term investments in Korea, the lobby groups said.

The bill will be made into law, if it is tabled and passes with a majority vote during a plenary session.

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"The bill was railroaded by opposition parties," said an official at the Korea Enterprises Federation (KEF), a group representing the interests of employers.

Early Tuesday, the National Assembly Environment and Labor Committee held a plenary session and passed the bill. Members of the main opposition Democratic Party of Korea and minor opposition Justice Party were present at the meeting.

The opposition-led passage of the bill by the subcommittee was not only unacceptable, but deserves heavy criticism for ignoring the opinions of the government, the ruling party and businesses, the KEF added.

"We expressed opposition repeatedly over the past few months. The National Assembly should promptly take measures to stop this issue from moving forward," KEF said.

The competitiveness of the government and the businesses will be vastly undermined, it added, because the bill arbitrarily broadens the definition of labor disputes as well as that of two parties in an employment contract. This will, in turn, unnecessarily bring corporate entities into unresolved labor disputes, grounds highly likely to be exploited by unionized workers, the KEF said.

The Korea Chamber of Commerce and Industry (KCCI) also criticized the passage of the bill, saying businesses will be forced to curtail investments, leading to fewer job opportunities for young people.

"The bill weakens cooperation between corporate entities and causes the business ecosystem to collapse," it said in a statement. "Large firms will almost exclusively bear the burden of labor disputes, and illegal activities and strikes will surge. The number of legal disputes between management and labor will spike accordingly."

According to the Federation of Korean Industries, the country's largest business lobby, the broadened definition will ultimately fan and cement the notion that a strike is the silver bullet in dealing with all thorny labor issues.

"Labor groups will demand talks with the management over decisions that factored in the discrepancies and judgment calls of the management ― let alone issues deliberated by courts," the FKI said in a statement.

lkm@koreatimes.co.kr