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Confusion predicted on first day of 'Yellow Envelope' law enforcement

Published: 11 Mar. 2026, 00:00

Members of the Korean Confederation of Trade Unions chant slogans during a rally declaring a new phase of labor struggle along Sejong-daero in Jongno District, Seoul, on March 10. [NEWS1]

Labor groups launched a wave of demands for negotiations with primary contractors on Tuesday, the first day the “Yellow Envelope” law took effect. The move raised concern that the number of labor disputes could increase across industries.

The Korean Confederation of Trade Unions (KCTU) said it sent bargaining requests to primary employers at companies under which members of seven industrial unions work, including those belonging to the Korean Metal Workers’ Union. About 137,000 subcontracted workers at roughly 900 workplaces are expected to participate.

The law broadens collective bargaining rights by allowing subcontracted workers to seek talks with the principal contractor they regard as their “real employer.”

On Tuesday, university janitors and security workers, a parcel delivery union and unions at subsidiaries of state-run companies demanded negotiations with their primary contractors. The KCTU-affiliated Korean Construction Workers Union had already requested collective bargaining with 100 construction firms two days earlier.

Concerns are growing that conflicts surrounding the law could evolve into broader spring labor disputes.

President Lee Jae Myung addressed the issue during a meeting aimed at encouraging cooperation between large corporations and smaller suppliers.

“The most important factor for sustainable growth is creating an ecosystem of cooperation,” he said.

Lee cited Hanwha Ocean, which decided to grant performance bonuses to subcontracted workers on the same basis as its own employees, calling the move “very exemplary.”

However, protests have already emerged at Hanwha Ocean worksites. Workers from subcontracted services, such as cleaning and food operations, are also demanding the same bonuses despite having no direct role in production.

Some analysts warn that the subcontracting system, which has supported Korea's industrial competitiveness through specialization and division of labor, could weaken if such demands spread.

To minimize confusion, the government must be careful when implementing the law. Officials say they will accumulate precedents through an advisory body called the “Collective Bargaining Assessment Support Committee.”

Questions remain regarding how effective the interpretations of a nonbinding advisory body will be.

The National Labor Relations Commission will play a crucial role because it must make initial judgments on key issues such as whether a company qualifies as a bargaining counterpart.

If the commission fails to handle disputes in a balanced way, past rulings could be revived in political debate and deepen controversy. The commission must act as a neutral mediator and provide objective decisions to limit confusion in workplaces.

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.