Kim Young-hoon, the Minister of Employment and Labor under the Yoon Suk-yeol administration, is approaching his one-year anniversary in office. While he has made significant strides in reducing workplace injuries, uncertainties surrounding the implementation of the Yellow Envelope Law (revised Labor Union Act Articles 2 and 3) remain a pressing issue.
According to relevant authorities on July 21, Minister Kim has focused on mediating conflicts between labor and management while aligning with the government's policy direction over the past year.
From the outset of his tenure, Kim prioritized reducing workplace injuries. He emphasized at a Cabinet meeting early in his term, "I will stake my position on reducing workplace injuries." In response, the Ministry of Labor expanded on-site inspection personnel and conducted intensive inspections at 100,000 high-risk workplaces. Additionally, consulting services were provided to small businesses with fewer than five employees, which had previously been considered blind spots, and special measures were implemented for companies with recurring serious accidents.
These policy efforts have yielded results. In the first half of the year, the number of workplace fatalities investigated was 253, a decrease of 34 (11.8%) compared to the same period last year. This marks the lowest figure since the relevant statistics began in 2022, with the largest reduction recorded to date. Notably, the construction industry, identified as a major risk sector, saw 33 fewer fatalities compared to the previous year.
The Yellow Envelope Law presents both advantages and challenges. Under this law, primary contractors are recognized as employers even if they do not directly sign labor contracts, and restructuring is included within the scope of collective bargaining. This measure aims to improve the rights of subcontracted workers, ensuring the constitutional labor rights of freedom of association, collective bargaining, and collective action.
However, the practical implementation of the Yellow Envelope Law remains a challenge. There is still insufficient clarity on the criteria for determining the extent of influence primary contractors have over the working conditions of subcontracted workers to be recognized as employers. Consequently, requests for clarification on the primary contractors' bargaining obligations have been submitted to the Labor Relations Commission.
Even after the Labor Commission makes its determinations, delays in sending out detailed rulings with specific grounds for recognition or non-recognition have led to repeated disputes, as labor and management have been unable to confirm the criteria in a timely manner. Moving forward, Minister Kim's task will be to enhance the predictability of the Yellow Envelope Law and ensure its effective implementation in the field, which means increasing the transparency of rulings and reducing confusion in workplaces.
There are still structural challenges that need to be addressed. With a continuous decline in employment among the youth due to changes in social structure, discussions on extending the retirement age must commence. Finding a cooperative solution that prevents youth employment contraction while alleviating social burdens is essential.
Additionally, protecting platform workers and reforming employment insurance based on income are pressing issues. The Ministry of Labor has recently commissioned research to develop policies aimed at protecting the rights of workers outside the Labor Standards Act, including platform workers and freelancers. A legislative proposal to amend the Employment Insurance Act and the Enforcement Decree of the Employment and Industrial Accident Insurance Collection Act, which would change the criteria for employment insurance coverage from working hours to income, has also been announced.
According to relevant authorities on July 21, Minister Kim has focused on mediating conflicts between labor and management while aligning with the government's policy direction over the past year.
From the outset of his tenure, Kim prioritized reducing workplace injuries. He emphasized at a Cabinet meeting early in his term, "I will stake my position on reducing workplace injuries." In response, the Ministry of Labor expanded on-site inspection personnel and conducted intensive inspections at 100,000 high-risk workplaces. Additionally, consulting services were provided to small businesses with fewer than five employees, which had previously been considered blind spots, and special measures were implemented for companies with recurring serious accidents.
These policy efforts have yielded results. In the first half of the year, the number of workplace fatalities investigated was 253, a decrease of 34 (11.8%) compared to the same period last year. This marks the lowest figure since the relevant statistics began in 2022, with the largest reduction recorded to date. Notably, the construction industry, identified as a major risk sector, saw 33 fewer fatalities compared to the previous year.
The Yellow Envelope Law presents both advantages and challenges. Under this law, primary contractors are recognized as employers even if they do not directly sign labor contracts, and restructuring is included within the scope of collective bargaining. This measure aims to improve the rights of subcontracted workers, ensuring the constitutional labor rights of freedom of association, collective bargaining, and collective action.
However, the practical implementation of the Yellow Envelope Law remains a challenge. There is still insufficient clarity on the criteria for determining the extent of influence primary contractors have over the working conditions of subcontracted workers to be recognized as employers. Consequently, requests for clarification on the primary contractors' bargaining obligations have been submitted to the Labor Relations Commission.
Even after the Labor Commission makes its determinations, delays in sending out detailed rulings with specific grounds for recognition or non-recognition have led to repeated disputes, as labor and management have been unable to confirm the criteria in a timely manner. Moving forward, Minister Kim's task will be to enhance the predictability of the Yellow Envelope Law and ensure its effective implementation in the field, which means increasing the transparency of rulings and reducing confusion in workplaces.
There are still structural challenges that need to be addressed. With a continuous decline in employment among the youth due to changes in social structure, discussions on extending the retirement age must commence. Finding a cooperative solution that prevents youth employment contraction while alleviating social burdens is essential.
Additionally, protecting platform workers and reforming employment insurance based on income are pressing issues. The Ministry of Labor has recently commissioned research to develop policies aimed at protecting the rights of workers outside the Labor Standards Act, including platform workers and freelancers. A legislative proposal to amend the Employment Insurance Act and the Enforcement Decree of the Employment and Industrial Accident Insurance Collection Act, which would change the criteria for employment insurance coverage from working hours to income, has also been announced.
* This article has been translated by AI.
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