Labor Ministry says workplaces are stabilizing as strikes loom

More than 100 days after the revised Trade Union and Labor Relations Adjustment Act, commonly known as the "Yellow Envelope Act," took effect, the Ministry of Employment and Labor insists that industrial relations are becoming more stable. According to the ministry, demands by subcontractor unions to negotiate directly with primary contractors are increasing more slowly, while dialogue between contractors and subcontractors is gradually improving.

Business groups, however, argue that the ministry's assessment bears little resemblance to conditions on the ground. Rather than stabilizing, they say, labor disputes are spreading as subcontractor unions move closer to launching strikes against primary contractors.

According to the ministry, 1,161 subcontractor labor unions sought collective bargaining with 439 primary contractors during the law's first 100 days. The number of unions requesting negotiations rose from 363 in March to 405 in April and 428 in May.

The ministry argues that the slowing pace of increase demonstrates that labor relations are gradually stabilizing. It also notes that each primary contractor has received an average of only 2.6 bargaining requests, insisting that fears of a "bargaining tsunami" have not materialized.

Developments at industrial worksites, however, suggest continuing uncertainty. At Hanwha Ocean, a subcontractor union representing cafeteria and facility management workers has conducted a strike authorization vote and filed for labor dispute mediation with the regional labor relations commission.

Meanwhile, the Korean Plant Construction Workers Union has begun holding strike authorization votes across eight regional branches through June 26 to secure bargaining rights with primary contractors. If labor authorities suspend mediation, subcontractor unions would be legally permitted to strike against primary contractors.

Labor authorities have also added to uncertainty by withholding key details from recent rulings.

On June 15, the Ulsan Regional Labor Relations Commission recognized a subcontractor union's demand for direct bargaining with Hyundai Motor. However, it did not disclose which union was granted bargaining rights, what issues qualified for negotiation or how far the primary contractor's bargaining obligations extend.

As a result, companies face uncertainty about whether to accept or reject bargaining requests.

Such confusion was widely predicted before the revised law took effect. Nevertheless, the Labor Ministry's interpretive guidelines remain ambiguous, while labor commission rulings have recognized primary-contractor status in roughly nine out of 10 cases, reinforcing business concerns that the process is tilted against employers.

If the government genuinely seeks stability in industrial relations, it should move beyond self-serving interpretations and provide clear guidelines on how the law will be applied. It should also define more precisely the circumstances under which companies will be recognized as employers with bargaining obligations. Greater legal clarity, rather than optimistic assessments, is essential to reducing uncertainty and preventing further labor conflicts.