Yellow Envelope Law Takes Effect as Hyundai, Shipbuilding Subcontractor Unions Renew Bargaining Demands

With the so-called Yellow Envelope Law — revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act — taking effect, labor-management tensions are rising.
 
Industry officials said the Hyundai Motor subcontractor union, the Hyundai Motor Non-Regular Workers Branch, plans to send a third request for talks to the parent company on Tuesday through its umbrella group, the Korean Metal Workers’ Union. The union has already delivered two formal requests but said the company did not respond. It is seeking discussions with the parent company on converting workers to regular status and steps to ease job insecurity.
 
The in-house subcontractor union at HD Hyundai Heavy Industries, also affiliated with the Korean Metal Workers’ Union under the Korean Confederation of Trade Unions, said it will deliver a bargaining request to HD Hyundai Heavy Industries on Tuesday. The union said it sent two letters in January but received no meaningful response, and is renewing its demand to coincide with the law’s start.
 
The union is seeking a 30% wage increase this year, the same performance bonuses as the parent company, recognition of an eight-hour day as one work unit, and at least five days of paid holidays. It is also considering asking that its demands be included in the parent company union’s bargaining agenda if management refuses to negotiate directly.
 
The Ulsan Plant Construction Union said it will begin sending bargaining requests Tuesday, through its umbrella organization, to three petrochemical companies — SK, S-Oil and Korea Zinc — and to four general contractors including Hyundai Engineering & Construction and Hyundai Engineering.
 
These subcontractor unions argue the parent companies should be bargaining counterparts because they effectively receive safety instructions and day-to-day work supervision from them. As subcontractor unions across industries press for direct talks, parent companies are holding back from immediate public responses while weighing how to proceed.
 
Some companies are consulting law firms and preparing for possible scenarios. Overall, many are waiting to see how labor authorities rule on whether parent companies qualify as employers for bargaining purposes.