Primary Contractors Hit with Union Bargaining Demands Top 400

Two Months Since Yellow Envelope Law Took Effect 1,091 Unions File Requests, Covering 150,000 Workers Field Confusion Persists Over Scope of Bargaining

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By Yang Jong-gon
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Workers hold placards and chant slogans at the "World Labor Day Ulsan Rally" held by the Korean Confederation of Trade Unions' Ulsan chapter in front of the south gate of Ulsan City Hall on May 1, Labor Day. Yonhap News - Seoul Economic Daily Society News from South Korea
Workers hold placards and chant slogans at the "World Labor Day Ulsan Rally" held by the Korean Confederation of Trade Unions' Ulsan chapter in front of the south gate of Ulsan City Hall on May 1, Labor Day. Yonhap News

The number of primary contractor workplaces facing collective bargaining demands from subcontractor labor unions has surpassed 400, just over two months after the Yellow Envelope Law (revised Trade Union Act) took effect. Contrary to the law's intent of encouraging dialogue between labor and management, field sites remain mired in confusion, with conflicts between primary contractors and subcontractors over bargaining intensifying.

According to data on the revised Trade Union Act submitted by the Ministry of Employment and Labor to the office of Rep. Kim So-hee of the People Power Party on Thursday, 1,091 subcontractor unions had demanded bargaining with 403 primary contractor workplaces as of May 29. The number of "subcontractor unions demanding bargaining," which stood at 407 on the law's effective date of March 10, more than doubled over two months, while union membership over the same period rose from 81,583 to 151,293.

As bargaining demands increase, conflicts between primary contractors and subcontractors are deepening further. Primary contractors and subcontractor unions that reject rulings by regional labor relations commissions are expected to file for review with the National Labor Relations Commission from late this month. Pressure from labor groups is also mounting. Following last month's settlement of the Cargo Truckers Solidarity Union strike, the Korean Confederation of Trade Unions (KCTU) announced plans to launch a nationwide general strike in July to push for primary contractor bargaining.

"Confusion on the ground over interpreting the scope of bargaining under the revised Trade Union Act persists," said Cho Joon-mo, a professor of economics at Sungkyunkwan University. "It is also clashing with other laws such as the Serious Accidents Punishment Act, creating cascading ripple effects."

Original reporting by Yang Jong-gon for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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