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407 subcontractor unions demand negotiations on first day of ‘Yellow Envelope' bill

Published: 11 Mar. 2026, 17:28 Updated: 11 Mar. 2026, 17:30

LIM JEONG-WON
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Unionized workers of the Korean Confederation of Trade Unions shout slogans during a rally in central Seoul on March 10, the first day the so-called Yellow Envelope Bill went into effect.[YONHAP]

A total of 407 unions from subcontracted companies demanded collective bargaining with 221 primary contractors on Tuesday, the first day the "Yellow Envelope" bill was implemented, according to the Ministry of Employment and Labor.

The number of individual subcontracted workers involved in the requests after the act was implemented totaled about 81,600.

However, only five primary contractors — Hanwha Ocean, Posco, Coupang Logistics Service, Busan Transportation Corporation and Hwaseong City — had posted official notices acknowledging the bargaining requests as of Tuesday. Those contractors accounted for just 2.3 percent of the total.

The remaining primary contractors will likely review whether they are eligible for consideration of bargaining requests internally, then decide whether to post the notice or undergo a National Labor Relations Commission review, which can take up to 20 days.

Among the 407 subcontractor unions seeking negotiations, 357 were affiliated with the Korean Confederation of Trade Unions (KCTU).

A total of 36 subcontractor unions under the Korean Metal Workers’ Union — representing about 9,700 members — demanded bargaining with 16 primary contractors, including Hyundai Motor, Hyundai Mobis, Hyundai Glovis, HD Hyundai Heavy Industries, Hanwha Ocean and GM Korea.

Unionized workers of the Korean Confederation of Trade Unions shout slogans during a rally in central Seoul on March 10, the first day the so-called Yellow Envelope Bill went into effect.[YONHAP]

The Federation of Korean Construction Industry Workers’ Union also requested negotiations with 90 primary contractors, including Hyundai Engineering and Construction and Hyundai Engineering.

Subcontractor unions in various sectors also filed bargaining requests. They included unions representing bank call centers, university cleaning workers, workers employed by private contractors handling municipal waste, department stores and duty-free shops, parcel delivery services and Korea Post.

A total of 42 subcontractor unions affiliated with the Federation of Korean Trade Unions (FKTU) demanded bargaining with nine primary contractors, including Posco, Coupang Logistics Service, Seoul Metro, Korea Railroad Corporation and Incheon International Airport Corporation.

Unaffiliated unions were also confirmed to have requested negotiations with organizations including the Seoul Metropolitan Government, Gyeonggi Province and Korea Airports Corporation.

Unionized workers of the Korean Confederation of Trade Unions (KCTU), including KCTU chief Yang Kyung-soo, front row center, shout slogans during a rally in central Seoul on March 10, the first day the so-called Yellow Envelope Bill went into effect.[YONHAP]

The National Labor Relations Commission received 31 applications seeking the separation of bargaining units. The commission will determine whether to separate the units based on factors that include differences in working conditions, employment status and existing bargaining practices.

If questions arise over legal interpretation in collective bargaining cases, the government will support the decision-making process through a committee designed to determine cases.

The Labor Ministry described the wave of requests as “the first step toward cooperative negotiations.”

A primary contractor could be recognized as an employer if there is evidence that it effectively controls or determines the wage levels of subcontracted workers, the Labor Ministry said.

However, the ministry added that wages are generally compensation for labor and are not typically subject to collective bargaining with primary contractors without specific grounds.

Minister of Employment and Labor Kim Young-hoon speaks during a meeting at the government complex in Jongno District, central Seoul on March 11. [YONHAP]

“Bargaining has begun in accordance with legal procedures such as the public notice of bargaining requests and the separation of bargaining units,” said Labor Minister Kim Young-hoon. “The government will also responsibly support the stable implementation of the revised Trade Union Act.”

As these figures were compiled as of 8 p.m. on the first day of implementation, the Labor Ministry anticipates that more unions will begin demanding negotiations.

"The FKTU has not yet fully engaged in bargaining negotiations, and the KCTU is expected to make additional demands," a ministry official said. "We anticipate more subcontractor unions will be requesting negotiations in the future."

The Yellow Envelope bill, an amendment to the Trade Union and Labor Relations Adjustment Act, was designed to guarantee bargaining rights for indirectly employed and subcontracted workers and prohibit companies from filing damage claims against unionized workers.

It was passed by the National Assembly on Aug. 24 last year on the third attempt, following two vetoes by former President Yoon Suk Yeol, who argued it would make it difficult for companies to hold unions accountable for illegal strikes and could hamper business activities.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JEONG JAE-HONG,LIM JEONG-WON [[email protected]]