Revised 'Yellow Envelope Act' Sparks Controversy Over Labour Disputes
Hızlı Bakış
- Critics warn that South Korea's revised "Yellow Envelope Act," expanding labour dispute scope to include business management decisions, could escalate disputes, create business uncertainty, and threaten economic recovery.
- The controversy is exemplified by SK Hynix's profit-linked bonus agreement.
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The revised Trade Union and Labour Relations Adjustment Act, known as the Yellow Envelope Act, has expanded the scope of labour disputes to include business management decisions affecting working conditions.
If left unchecked, critics warn, the revised Trade Union and Labour Relations Adjustment Act – commonly known as the Yellow Envelope Act – could fuel labour disputes, create uncertainty for businesses and threaten an economy that is only beginning to recover.
At the heart of the controversy is whether calls for bonus adjustments and other such demands fall under the new act, which has expanded the scope of labour disputes beyond traditional issues such as wages, working hours, welfare and dismissals to include “business management decisions affecting working conditions”.
That broader definition has emboldened some unions to make demands that would previously have been considered beyond their collective bargaining remit.
The controversy over profit-linked bonuses began at SK Hynix, which agreed last year to remove its previous cap and allocate 10 per cent of annual operating profit to an employee bonus pool for the next decade.
Açık Sorular
- How will courts interpret 'business management decisions'?
- What specific demands will unions make next?
- How will businesses adapt to the expanded scope?
