On the first day of the enforcement of the so-called “Yellow Envelope Law” in South Korea, subcontracted labor unions across major industrial sectors began demanding collective bargaining with parent companies.

In major industrial cities such as Ulsan, unions representing subcontract workers submitted official bargaining requests to large corporations, including companies in the automobile, shipbuilding, and petrochemical industries. Meanwhile, companies are largely refraining from immediate public responses while seeking legal advice on how to respond.

In the shipbuilding sector, a subcontract workers’ union at HD Hyundai Heavy Industries delivered a bargaining request to the parent company. The union is demanding a 30% wage increase, equal performance bonuses with direct employees, and expanded paid holidays.

Subcontract workers in the automobile sector also submitted bargaining requests to Hyundai Motor, arguing that issues such as job security and the possibility of regular employment should be discussed directly with the main contractor.

Similar moves are emerging in petrochemical and construction sectors. Labor unions representing plant construction workers plan to send negotiation requests to companies such as SK, S-Oil, Korea Zinc, Hyundai Engineering, and Hyundai Construction.

Labor groups say the revised law allows subcontract workers to negotiate directly with the companies that effectively determine their working conditions. Businesses, however, are taking a cautious approach while waiting for legal interpretations regarding employer responsibility under the new law.

The law strengthens the responsibility of main contractors for subcontracted workers and expands the scope of labor disputes, while limiting companies’ ability to seek damages against striking workers.

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