'Yellow envelope law' at 1 month: bargaining expands, but not to “thousands”

One month after South Korea's revised labor law took effect, early rulings suggest the worst-case scenarios from business groups have not materialized. Employers said the "yellow envelope law" — a pro-labor act limiting damages against strikers — could force companies to bargain with hundreds or even thousands of subcontractor unions and invite interference in core management decisions. However, the first rulings have shown a limited scope. Labor authorities have recognized employer status more broadly for principal contractors, while restricting bargaining to a limited number of units and confining recognized issues largely to working conditions. The law marked its first month Friday. It expanded the definition of employer to include firms that substantially control working conditions even if they do not directly hire the workers. Labor relation commissions nationwide started ruling on subcontractor unions' bargaining demands, often recognizing prime contractors as the "real employer" of subcontracted workers. Business groups said this could lead to endless demands, but the governm

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