For the first time in the history of Korean labor unions, a subcontractor union's strike aimed at negotiating with prime contractors has entered its final countdown. The National Plant Construction Workers' Union under the Korean Confederation of Trade Unions (KCTU) said Tuesday that a vote on industrial action over prime contractor negotiations, held in eight regions nationwide, passed with a 79.2% approval rate. As a result, the first strike by a subcontractor union against prime contractor companies since the Yellow Envelope Law took effect in March this year has become imminent. The plant union is demanding negotiations with four ordering companies, including POSCO, S-Oil, Korea Zinc, and SK Energy, as well as 10 general construction firms, including SK Ecoplant. The plant union said that since the National Labor Relations Commission has recognized the employer status of these ordering and construction companies, it will begin strike procedures on the first of next month against prime contractor companies that do not come to the negotiating table.
With the subcontractor union strike becoming a reality, the shockwaves of the Yellow Envelope Law are showing signs of spreading rapidly across the industrial sector. Already, the union at "Wellive," a contractor handling catering and commuter bus operations for Hanwha Ocean, has given notice of industrial action on the grounds that management has not come to negotiations after the labor relations commission recognized its employer status. The finished-vehicle industry, including Hyundai Motor, is also threatening to strike while demanding "performance pay of N% of profits." On top of this, the KCTU has announced a general strike for the 15th of next month demanding negotiations with prime contractors, raising concerns that this year's summer labor offensive will be even fiercer.
The reason that simultaneous strike notices from prime and subcontractor unions at major large corporations have continued one after another particularly this year is largely the influence of the Yellow Envelope Law. The enforcement of the Yellow Envelope Law, which limits liability for damages caused by industrial action and includes management decisions affecting working conditions within the scope of disputes, has made it easier for unions to play the strike card. The ruling party and government must squarely face the fact that the flood of negotiation demands from prime and subcontractors since the Yellow Envelope Law took effect could plunge companies into a constant strike risk and inflict irrecoverable losses. If the Yellow Envelope Law is left as it is, there is a strong concern that it will become a self-defeating move that damages the nation's economic power. The government must manage industrial dispute mediation procedures more strictly, and the political sector must hurry to supplement the legislation, including re-amending the Yellow Envelope Law. Unions, too, should recognize that if the labor-management symbiotic ecosystem collapses through the routinization of strikes, investment contraction and job losses will worsen, and ultimately the damage will inevitably return to workers.
