Hyundai Steel inks first collective bargaining deal with subcontractors since Yellow Enevelope law

Hyundai Steel became the first domestic company to sign a collective bargaining agreement with subcontracted workers since the "Yellow Envelope" act took effect in March on Thursday, expanding the bargaining obligations of primary contractors toward subcontracted workers.

According to the Ministry of Employment and Labor, Hyundai Steel held a collective agreement signing ceremony at its Dangjin plant, attended by labor and management representatives from the steelmaker and four subsidiaries — Hyundai ITC, Hyundai IEC, Hyundai IMC and Hyundai ISC.

They signed the 2026 collective bargaining agreement between the prime contractor and subcontractors, the ministry said.

Hyundai Steel's management has conducted separate negotiations, primarily over industrial safety issues, with the labor and management of the four subcontractors since Aug. 20.

They subsequently reached a final agreement, which includes a commitment to continuously improve industrial safety and health management systems at the subcontractors, the ministry noted.

The labor law revision has made prime contractors more accountable for subcontracted workers while restricting businesses from claiming damages from striking workers.

Yonhap