Joint Statement of Six Economic Organizations Calling for Suspension of Trade Union Act Amendment | Economic Impact and Industry Concerns

2023-11-08 18:01:53
° Executives from six economic organizations, including Lee Dong-geun, full-time vice president of the Korea Employers Federation, are announcing a ‘joint statement of six economic organizations calling for the suspension of legislation on the amendment to the Trade Union Act’ at the National Assembly communication hall in Yeouido, Seoul on the 8th. Reporter Lee Deok-hoon

When the Democratic Party of Korea announced its plan to submit the Yellow Envelope Act (Amendment to Articles 2 and 3 of the Trade Union Act) to the plenary session on the 9th and enforce it, the economic and industrial circles protested, saying, “It will be an evil law that will destroy the industrial ecosystem and threaten jobs for future generations.” did.

On the 8th, six domestic economic groups, including the Korea Employers Federation, Korea Chamber of Commerce and Industry, Korea International Trade Association, Korea Economic Association, Federation of Small and Medium Businesses, and Korea Federation of Mid-sized Enterprises, announced a ‘joint statement of six economic groups calling for the suspension of legislation on the amendment to the Trade Union Act’ at the National Assembly. did.

The six economic groups said in a statement, “The economic community has repeatedly complained that if the amendment is passed, industrial sites will be in a state of extreme chaos and our companies will no longer be able to conduct business normally, but the opposition party has taken the lead in passing the bill with the strength of the majority. “I cannot help but be devastated by the situation in which this is being pushed forward,” he said.

The business community is most concerned that both primary and subcontractors will suffer from negotiation and strike disputes throughout the year due to the vague concept of user (primary contractor) in the Yellow Envelope Act. In the case of Hyundai Motor Company, it has regarding 5,000 partners, including 2nd to 4th tier vendors and their subcontractors under regarding 350 1st tier partners. If the amendment is passed, Hyundai Motors might be put in a situation where it has to individually respond to the negotiation demands or strikes of thousands of suppliers. The business community believes that major domestic industries such as automobiles, shipbuilding, and construction will inevitably face production disruptions as they respond to labor-management disputes throughout the year.

In addition, the business community is concerned that the Yellow Envelope Act limits liability for damages resulting from illegal acts by unions, saying, “This law will encourage illegal strikes and will destroy the industrial ecosystem.” Under the current law, if a union commits an illegal act such as blocking CCTV during a workplace occupation, the union, executives, and members must take joint responsibility for the damages. The company can file a lawsuit once morest them all at once, but if the law is revised, it will have to file a lawsuit for each compensation obligor and prove each union member’s illegal acts and the amount of damage one by one. The six economic groups said, “Illegal acts such as violence and destruction by powerful labor unions, occupation of workplaces, and obstruction of entry and exit are still occurring frequently in industrial sites,” adding, “Even if unions commit illegal acts, industrial sites cannot claim compensation for damages.” “We will be plagued with labor disputes and illegal activities all year long,” he said.

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