The Yellow Envelope Law originated from citizen donations to support SsangYong Motor strike workers. The photo shows the Metal Workers’ Union holding a rally in front of the main gate of SsangYong Motor’s Pyeongtaek plant in June 2010, marking the first anniversary of the factory occupation strike. (Yonhap)
SEOUL, Oct. 2 (Korea Bizwire) — Nearly four in ten foreign companies operating in South Korea view the new government’s labor policies unfavorably, with particular concern over the recently enacted “Yellow Envelope Law,” a survey shows.
According to a poll released Wednesday by the Korea Foreign Enterprises Association (KOFA), 41 percent of the 100 foreign-invested companies surveyed rated the administration’s labor agenda negatively, compared with 26.5 percent who gave a positive assessment. Another 32.5 percent responded neutrally.
The Yellow Envelope Law, designed to limit companies’ ability to seek damages from striking workers and extend liability to parent firms for subcontracted labor disputes, drew the sharpest criticism.
More than half of respondents (50.6 percent) said they viewed the measure unfavorably, citing heightened legal risks for parent companies (66.3 percent), concerns about encroachment on management rights through expanded collective bargaining (50.6 percent), and weakened defenses against illegal strikes due to restrictions on damage claims (49.4 percent).
To prepare for the law’s implementation, 66.3 percent of companies said they would review their subcontracting structures and command systems, while others planned to establish dispute-response manuals (44.6 percent) or strengthen legal and labor-relations consulting (43.4 percent).
Not all government initiatives drew skepticism. Proposals to extend the retirement age earned the highest approval, with 59 percent in favor, citing the benefits of retaining older workers’ expertise (66.3 percent) and easing labor shortages (51.8 percent).
The idea of a 4.5-day workweek also drew more support (44.6 percent) than opposition (30.1 percent). Meanwhile, the ban on fixed “comprehensive wage” contracts split opinion, with 32.5 percent positive, 26.5 percent negative, and 41 percent neutral.
KOFA said the overall negative outlook was driven largely by widespread unease over the Yellow Envelope Law.
M. H. Lee (mhlee@koreabizwire.com)
