Yellow Envelope Act's 100 Days: Subcontractors Seek Negotiation, Primary Firms Delay

One hundred days after the "Yellow Envelope Act" took effect, the intended reform to empower subcontracted workers faces significant hurdles. The law, which amends the Labor Union and Labor Relations Adjustment Act, aims to enable subcontracted workers to negotiate directly with primary contractors. Since its implementation on March 10, over 1,151 subcontracted unions have formally requested negotiations with 434 primary contractors. However, the reality on the ground is starkly different: only 90 primary contractors have publicly announced these negotiation requests, and a mere nine have actually commenced collective bargaining.

The situation is particularly dire in the public sector. Despite assurances of being "model employers," 188 public sector primary contractors, who received negotiation requests from 478 subcontracted unions, have only announced negotiations in 40 cases, with none having started actual bargaining. This indicates a systemic resistance to the law's intent, regardless of the employer's sector.

“

The Yellow Envelope Act is a necessary measure to alleviate the polarized labor market reality by supplementing real income through the minimum wage. Differentiated application by industry will justify discrimination between workers and fuel polarization in the labor market.

The primary reasons for this stagnation are the intricate negotiation initiation process and the "delaying strategies" employed by primary contractors. The process involves multiple steps, including the submission of negotiation requests, public announcements, applications for participation by other subcontracted unions, confirmation of negotiating unions, and a period for unified bargaining channels. If primary contractors refuse to announce negotiations or engage in substantive talks, unions must seek a ruling on their employer status from labor relations commissions, a process that can be further prolonged if primary contractors appeal to the courts.

“

You are stopping the logic of differentiated application by industry by turning away from the survival rights of 8.7 million special employment (service providers) and platform workers for the formal reason that they are not workers under the Labor Standards Act.

Despite these obstacles, labor courts are increasingly adopting a more inclusive definition of employer status. They tend to recognize a primary contractor as an employer if they exert substantial control over even one aspect of a subcontractor's labor conditions. Out of 80 cases seeking employer status rulings filed with regional labor commissions by April 12, approximately 86% (69 cases) were recognized. Recent rulings have even extended this to non-core operational areas like company cafeterias.

The "Yellow Envelope Act" represents a societal demand to address the disparity between primary and subcontracted workers. While the accumulation of rulings from labor commissions and courts is expected to clarify employer status criteria and help the system stabilize, the lengthy legal processes, potentially spanning years through regional commissions, national commissions, and administrative lawsuits, are a significant concern. Primary contractors may be banking on reduced costs or diminished union momentum during this period, but this "small gain for a great loss" approach ultimately escalates conflict. The article urges primary contractors to embrace the reality that building trust with unions enhances corporate competitiveness and to engage in negotiations responsibly.

“

Differentiated application by industry is not discrimination that stigmatizes a specific industry, but a ladder of survival that provides breathing room for industries on the verge of collapse, thereby maintaining employment.