Businesses slam railroading of 'yellow envelope' bill

Industry

Published: 24 Feb. 2023, 14:45

Businesses slam railroading of 'yellow envelope' bill

Lawmaker Lim Lee-ja of the People Power Party protests against Jeon Hae-cheol of the Democratic Party during an Environmental and Labor Committee meeting at the National Assembly in Yeouido, western Seoul, on Feb. 21. [NEWS1]

Businesses are fuming over the opposition-led passage of a bill package that restricts their ability to seek damages in the event of losses related to labor strikes.

Proponents argue that such bills are necessary to protect labor rights, while opponents see them as threats to the country’s economy.

At an Environmental and Labor Committee session at the National Assembly on Tuesday, the Democratic Party (DP) and the Justice Party railroaded the so-called “yellow envelope” bill to prohibit employers from seeking compensation if businesses are harmed as a result of a strike.

The bill protects regular workers, sub-contractors and freelancers.

The controversial issue of strike-related damages first emerged in May 2009, when unionized workers at SsangYong Motor staged a strike to oppose massive layoffs. The Supreme Court ordered the workers to pay 4.7 billion won ($3.6 million) to the company as compensation.

Civic activists made donations to SsangYong Motor workers with yellow envelopes, demanding the government to amend Articles 2 and 3 of the Trade Union and Labor Relations Adjustment to protect striking workers.

The bill package was approved by the 16-member committee's nine DP members and one Justice Party member, while six People Power Party members walked out before the vote in protest.

Justice Party leader Lee Jeong-mi celebrates the passage of the yellow envelope bill in front of the National Assembly in Yeouido, western Seoul, on Feb. 21. [YONHAP]

“It’s very regretful that the opposition party railroaded the revision despite a series of objections from the ruling party and business groups,” the Korea Enterprises Federation wrote in a statement.

“The revision will recklessly expand the concept of a labor strike and make companies engage in the dispute, and this will seriously harm Korean businesses and national competitiveness,” it added. “The National Assembly must halt the discussion.”

Korea Chamber of Commerce and Industry (KCCI) also issued a statement Wednesday, expressing concerns about its impact on the country’s job market and economy.

The revision will make “strikes and illegal practices more prevalent at industrial sites and legal fights between labor and management will dramatically surge,” KCCI said.

“It will hamper investment and cause deindustrialization, which will eventually threaten the job market,” it added. “This is an act of pouring cold water on Korean companies’ efforts in the economic crises, so we strongly urge the government to halt the revision.”

Despite support from the DP and its parliamentary majority, the yellow envelope bill is expected to face a turbulent path ahead.

The bill is now handed over to the Legislation and Judiciary Committee, which is chaired by Rep. Kim Do-eup of the People Power Party. It should be reviewed by the committee within 60 days.

If the bill is pending for more than 60 days in the judiciary committee, it can be put directly before a plenary session of the parliament for a vote.

Even if the bill is approved during the plenary session, it still faces a potential veto by President Yoon Suk Yeol.

Vetoed bills return to the National Assembly, where a two-thirds majority is required to override the veto.

BY SARAH CHEA [chea.sarah@joongang.co.kr]