{"id":2200201,"date":"2023-02-21T11:12:55","date_gmt":"2023-02-21T11:12:55","guid":{"rendered":"https:\/\/www.nknews.org\/koreapro\/?p=2200201"},"modified":"2023-04-05T16:09:41","modified_gmt":"2023-04-05T07:09:41","slug":"a-contentious-pro-labor-bill-expands-south-koreas-political-fight-over-unions","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/02\/a-contentious-pro-labor-bill-expands-south-koreas-political-fight-over-unions\/","title":{"rendered":"A contentious pro-labor bill expands South Korea\u2019s political fight over unions"},"content":{"rendered":"

The main opposition Democratic Party (DP) and the minor opposition Justice Party (JP) used their majority in the parliamentary labor committee on Tuesday to <\/span>push through<\/span><\/a> a contentious pro-labor bill that restricts damages suits against striking workers.<\/span><\/p>\n

The reality, however, is that the bill has little chance of becoming law, something politicians on both sides of the aisle know. Instead, the fight over the bill serves as a proxy for a larger struggle between the Yoon administration and the opposition over the government\u2019s recent efforts to target labor unions, as both sides appeal to supporters ahead of next year\u2019s election.<\/span><\/p>\n

Commonly known as the yellow envelope bill, it is named after envelopes used to deliver money to union workers to support them in <\/span>2014<\/span><\/a>, when a court ordered the workers to compensate automaker SsangYong Motor for losses incurred due to an illegal strike in <\/span>2009<\/span><\/a>.<\/span><\/p>\n

Interest in passing the law was renewed last year following a <\/span>51-day strike<\/span><\/a> by the Korean Metal Workers\u2019 Union (KMWU), which occupied Daewoo Shipbuilding and Marine Engineering\u2019s (DSME) shipyard. As the workers were subcontractors, DSME was not their legal employer, thus making their strike illegal. This gave DSME the legal grounds to claim damages, which it did to the tune of $36 million (<\/span>47 billion won<\/span><\/a>).<\/span><\/p>\n

DSME filed its damage claim suit against KMWU\u2019s leaders, severely affecting the defendants’ finances.<\/span><\/p>\n

The opposition parties seek to use the yellow envelope bill to limit corporations\u2019 ability to file suits against striking workers by setting caps on damages and prohibiting lawsuits against individuals. The bill will also guarantee the bargaining rights of indirectly employed workers.<\/span><\/p>\n

BUSINESS NEGATIVITY<\/b><\/p>\n

Lee Dong-geun, the vice chairman of the Korea Employers Federation (KEF), strongly <\/span>condemned<\/span><\/a> the bill, suggesting that it would be difficult for South Korea to maintain its position as one of the world\u2019s top economies if the government turned the bill into law.<\/span><\/p>\n

Most South Korean businesses agree with Lee, as they responded to the bill with <\/span>overwhelming negativity<\/span><\/a>. On Feb. 15, the Korea Employers Federation conducted an emergency survey of 30 major companies, and all the businesses that responded said they believed the legislation would harm their ability to remain competitive <\/span>\u2014<\/span> 16.7% of the respondents were negative, while 83.3% were very negative.<\/span><\/p>\n

More than 90% of major companies are also concerned that the bill will allow striking workers to stall negotiations, thus prolonging labor-management disputes deliberately. They believe it will provide a de facto limit to the liability that unions can face despite committing illegal acts.<\/span><\/p>\n

Some fear the bill could put smaller businesses at a severe disadvantage. As the scope of liability will be set individually, businesses would have to prove that each striking worker was responsible for a specific amount of financial loss. Small business owners with limited budgets would not have the resources to pursue such intricate litigation, putting them at the mercy of striking workers.<\/span><\/p>\n

POLITICAL HURDLES<\/b><\/p>\n

Although the yellow envelope bill passed the parliamentary labor committee easily due to the opposition party\u2019s overwhelming majority, the bill faces several significant hurdles going forward.<\/span><\/p>\n

First, the bill will head to the parliamentary legislation and judiciary committee, headed by PPP lawmaker <\/span>Kim Do-eup<\/span><\/a>. The legislation and judiciary committee will have 60 days to review the bill. If it does not review the bill within those 60 days, it will be forwarded to a plenary session where it could pass if it gets the support of three-fifths of the standing committee\u2019s members.<\/span><\/p>\n

But it faces one final hurdle. President Yoon Suk-yeol will have to sign the bill into law. He will most likely not do so. Conservatives have been lobbying Yoon to veto the bill if it ever gets to his desk. To overcome a presidential veto, two-thirds of the National Assembly must support a bill <\/span>\u2014 a much higher barrier than a simple majority.<\/span><\/p>\n

That the DP has passed this bill now is telling. The DP could have passed this bill while it had control of the National Assembly and the Blue House, but it did not because of worries that the bill could have been struck down over <\/span>concerns<\/span><\/a> about its constitutionality. Setting caps on damages that businesses can file against workers who participate in strikes could infringe upon private business owners\u2019 property rights.<\/span><\/p>\n

The DP likely knows that the bill will end up either tabled or vetoed, but it has decided to pass the bill regardless to cement labor union members\u2019 support before next year\u2019s parliamentary election.<\/span><\/p>\n

\"\"

President Yoon Suk-yeol presides over the eighth State Council meeting, Feb. 21, 2023 | Image: ROK Presidential Office<\/a><\/em><\/p><\/div>\n

POLITICAL BRAWL<\/b><\/p>\n

Yoon has not shied away from picking fights with the country\u2019s unions. Taking a <\/span>firm stand<\/span><\/a> against striking cement truck drivers was the first time Yoon saw his approval numbers improve after they first plummeted. It is a lesson that he has not forgotten.\u00a0<\/span><\/p>\n

Earlier in the year, Yoon called for labor reforms and hinted that he would be firm against labor unions\u2019 demands and actions, often characterizing them as \u201c<\/span>vested forces<\/span><\/a>.\u201d<\/span><\/p>\n

With the yellow envelope bill gaining traction in the National Assembly and the news media, the president has <\/span>instructed<\/span><\/a> the labor minister to report back to him on the accounting practices of labor unions, saying transparent accounting is the starting point for labor union reform.<\/span><\/p>\n

PPP lawmaker Kweon Seong-dong recently <\/span>claimed<\/span><\/a> that the country\u2019s two largest umbrella unions <\/span>\u2014<\/span> the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions <\/span>\u2014<\/span> received $115 million (150 billion won) in subsidies from the government in the past five years.<\/span><\/p>\n

However, only <\/span>120 out of 327<\/span><\/a> labor unions and groups with 1,000 or more members complied with the government\u2019s request for their accounting records. This led to Yoon warning unions that refusal to disclose their accounts would result in \u201cfirm action.\u201d<\/span><\/p>\n

Labor minister Lee Jeong-sik <\/span>said<\/span><\/a> the government would give a 14-day grace period to the labor unions that have not yet complied with the government\u2019s request for their accounting records. However, if they continue to refuse, the government will conduct on-site inspections and impose fines if the unions try to block the inspection.<\/span><\/p>\n

That will likely lead to physical clashes between labor union members and government inspectors and officials, which could escalate.<\/span><\/p>\n

Yoon\u2019s approval rating rose <\/span>above 40%<\/span><\/a> this week for the first time in six weeks, most likely by embracing populist economics such as <\/span>freezing utility fees<\/span><\/a>. And he\u2019ll look to improve on those numbers by picking a fight with the country\u2019s biggest unions. In turn, that will elicit a counter-response from the <\/span>DP.\u00a0<\/span><\/p>\n

But as the two parties politicize the issue, more serious discussions about labor issues will be crowded out.<\/span><\/p>\n

Edited by Bryan Betts<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Domestic Politics<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

The main opposition Democratic Party (DP) and the minor opposition Justice Party (JP) used their majority in the parliamentary labor committee on Tuesday to push through a contentious pro-labor bill that restricts damages suits against striking workers. 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