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On the first day of the Yellow Envelope Act, 407 subcontracting unions requested negotiations... targeting 221 primary contractors.
  • Yonhap News
  • March 11, 2026 at 11:21 AM
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  • 81,600 subcontracted union members demand negotiations... only 5 out of 221 main contractors have announced it.
  • 31 applications for separation of bargaining units filed with the Labor Relations Commission... Government: "A first step towards win-win negotiations"
  • Ministry of Labor: "Wages can also be a subject of negotiation"


Chanting slogans, members of the Korean Confederation of Trade UnionsMembers of the Korean Confederation of Trade Unions (KCTU) chant slogans at a rally to declare their struggle held in Sejong-ro, Seoul, on March 10, the first day of the enforcement of the 'Yellow Envelope Act' (amendments to Articles 2 and 3 of the Labor Union and Labor Relations Adjustment Act). [Yonhap News]

On the first day of the enforcement of the 'Yellow Envelope Act' (amendments to Articles 2 and 3 of the Labor Union and Labor Relations Adjustment Act), 407 subcontract unions (representing 81,600 members) filed requests for negotiations with 221 primary contractors, according to estimates.


Among the 221 primary contractors, only 5 (2.3%) have announced their receipt of negotiation requests.


The Ministry of Employment and Labor announced on March 11 the status of negotiation requests from subcontract unions to primary contractors as of 8 PM on the previous day, the first day of the enforcement of the amended Labor Union Act.


Throughout the previous day, 407 subcontract unions, branches, and chapters filed negotiation requests with 221 primary contractor businesses under the amended Labor Union Act.


By union affiliation, 357 of the 407 subcontract unions belonged to the Korean Confederation of Trade Unions (KCTU).


The metal workers' union's subcontract unions, numbering 36 (with 9,700 members), requested negotiations with 16 primary contractors including Hyundai Motor Company, Hyundai Mobis, Hyundai Glovis, HD Hyundai Heavy Industries, Hanwha Ocean, and GM Korea.


The Construction Industry Federation submitted negotiation requests to 90 primary contractors, including Hyundai Engineering and Construction and Hyundai Engineering.


Subcontract unions representing call center workers in the banking sector, cleaning staff at universities, workers at private waste management contractors for local governments, and employees at department stores, duty-free shops, delivery services, and the Korea Post also filed negotiation requests.


Subcontract unions affiliated with the Federation of Korean Trade Unions (FKTU) submitted requests to 9 primary contractors, including POSCO, Coupang Logistics Service (CLS), Seoul Metro, Korea Railroad Corporation, and Incheon International Airport Corporation, with 42 such unions.


Approximately 5,100 members of unaffiliated subcontract unions, such as those at the Seoul Metropolitan Government, Gyeonggi Province, and Korea Airports Corporation, also engaged in negotiation requests.


Among the primary contractor employers, only 5 – Hanwha Ocean, POSCO, Coupang CLS, Busan Transportation Corporation, and Hwaseong City – have publicly announced their receipt of negotiation requests in accordance with legal procedures, indicating an intent to negotiate.


A Ministry of Employment and Labor official described this as "the first step towards win-win negotiations." He explained, "Expressing willingness to negotiate means not refusing the request for negotiation and adhering to legal procedures."


Announcement of negotiation request from POSCOAnnouncement of negotiation request from POSCO [Provided by FKTU]

A total of 31 applications for 'negotiation unit separation' were filed with the Labor Relations Commission by subcontract unions and others on the previous day. The Labor Relations Commission will decide on the separation of negotiation units based on significant differences in working conditions, employment types, and negotiation practices.


The Ministry of Employment and Labor plans to provide support through the 'Committee for Support of Collective Bargaining Decisions' for requests for authoritative interpretations on whether to recognize employer status for individual negotiation items.


Furthermore, the ministry intends to communicate responsibly and act as a model employer for negotiation requests in the public sector.


The Ministry of Employment and Labor also stated that wages can be a subject of negotiation. While wages are generally not subject to collective bargaining unless there is a specific basis, as they are compensation for labor provided by workers, the ministry explained that employer status is recognized if there is evidence that the primary contractor exercised substantial and concrete control or decision-making power.


Minister of Employment and Labor Kim Young-hoon emphasized, "As we are taking the first step towards win-win negotiations in accordance with legal procedures such as the announcement of negotiation requests and the separation of negotiation units, the government will also responsibly support the stable settlement of the amended Labor Union Act."


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