"Cafeteria and Laundry Workers Must Also Have Direct Bargaining Rights"... Concerns Over Potential Delays

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Today, June 17, marks the 100th day since the implementation of the "Yellow Envelope Act," which allows subcontracted union workers to negotiate directly with prime contractors. The scope of subcontracted workers recognized as subjects for direct bargaining has significantly expanded.

Reporter Jeon Hyeong-woo has the story.

[Reporter]

Workers at subcontracting firms providing cafeteria, laundry, and shuttle bus services at Hanwha Ocean have consistently demanded direct negotiations with the prime contractor.

[Hanwha Ocean Subcontracted Union: All workers employed at Hanwha Ocean must be able to negotiate with the prime contractor.]

The National Labor Relations Commission (NLRC) has ruled that Hanwha Ocean must engage in negotiations with these workers.

The commission determined that the prime contractor, Hanwha Ocean, qualifies as an "employer" under the Trade Union Act, as it makes substantial and specific decisions regarding the safety and working conditions of the subcontracted workers.

The NLRC explained its reasoning, stating, "The subcontracting firms cannot unilaterally implement improvements to aging facilities in kitchens, laundry rooms, or shuttle buses without the cooperation and approval of Hanwha Ocean."

The Ulsan Regional Labor Relations Commission also recognized that Hyundai Motor Company must respond to bargaining demands from 10 subcontracted unions responsible for cafeteria and security services.

As rulings that broadly recognize the employer status of prime contractors continue to emerge, the business community is pushing back.

[Jang Jeong-woo, Head of Labor-Management Cooperation at the Korea Enterprises Federation: We are concerned that confusion will increase as the scope of bargaining partners is expanded to include indirect support and cooperation relationships, rather than just prime-subcontractor relationships directly related to production.]

As the Yellow Envelope Act marks its 100th day today, 1,151 subcontracted unions had demanded negotiations with 434 prime contractors as of the 12th.

Among them, only 90 prime contractors have announced their intent to negotiate, and only 8 have actually begun negotiations, accounting for just 1.8% of the total.

[Yang Kyung-soo, President of the Korean Confederation of Trade Unions (on the 10th): When you open the lid, you find that there are no employers coming to the bargaining table. There are also many companies that initially said they would participate but are now requesting re-examination from the NLRC.]

With the law in its early stages, there is a strong tendency to seek legal judgments.

There are growing concerns that the process—going through regional labor commissions, the national commission, and even administrative litigation—may take too much time and cost too much to reach actual negotiations.

(Video reporting: Bae Moon-san | Video editing: Kim Ho-jin | Screen source: Metal Workers' Union Shipbuilding Subcontractors Branch | Data provided by: Office of Representative Kim So-hee)
※ Please note: This article was translated by AI and may contain errors.