Yellow Envelope Law: Don't Narrow Dispute Scope Through Enforcement Decree

President Lee Jae-myung has reiterated his directive for the Ministry of Employment and Labor to clearly define the scope of labor disputes permissible under the revised Labor Union Act, commonly referred to as the "Yellow Envelope Law." The President's aim is to clarify that issues such as the Samsung Electronics' corporate union's demand to include "Hoham Semiconductor Mega Project negotiation agenda" and large unions' requests for performance-based bonuses linked to operating profit are not legitimate grounds for dispute.

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Please clearly define by regulation whether issues are within the scope of disputes under the Yellow Envelope Law, or not, with examples.

However, this move is drawing criticism for potentially undermining the legislative intent of the "Yellow Envelope Law," which sought to broaden the definition of labor disputes. Critics argue that narrowing this scope through a presidential decree, rather than through the legislative process, could create more confusion and conflict in the workplace rather than resolving it. The Minister of Employment and Labor, Kim Young-hoon, indicated that the ministry is reviewing various options for a presidential decree or enforcement rule, a shift from his previous stance that such matters could not be handled by a decree and were already addressed by administrative interpretations.

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We are comprehensively reviewing enforcement decrees and enforcement rules.

The "Yellow Envelope Law" expands the scope of labor disputes from solely "decisions on working conditions" like wages and working hours to include "business decisions affecting working conditions." Critics contend that if the government narrows this scope through a presidential decree after the National Assembly broadened it through legislation, it would distort the law's purpose. Furthermore, the Constitution mandates that matters directly related to citizens' rights and duties must be stipulated by law. Presidential decrees can only address details delegated by law, and limiting the scope of labor disputes, which affects the constitutional right to collective action, is a significant issue for which no such delegation exists in the Labor Union Act.

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If the government narrows the scope through a presidential decree after the National Assembly broadened it through legislation, it would distort the law's purpose.

If the government proceeds to narrow the scope of disputes through a presidential decree, despite potential constitutional and legal challenges, it could trigger a cycle of unproductive conflict. Labor unions might initiate disputes based on the "Yellow Envelope Law," while management could label them as illegal strikes citing the decree. This would run counter to the law's objectives of mitigating social conflict and fostering labor-management harmony. Instead of attempting to control labor relations through hasty decrees, the government's role should be to provide subtle administrative guidance and support to minimize confusion as the new regulations take effect, allowing time for both parties to build experience and for precedents to be established through labor committees and court rulings.

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The government's role should be to minimize confusion in the field with delicate administrative guidance and direction until the new rules are in place, rather than hastily controlling labor relations through enforcement decrees.