South Korea's Chungnam National Labor Relations Commission recognized the 'employer status' of principal contractors for the first time since a new labor law took effect. The ruling stems from disputes over posting negotiation requests from subcontractor unions. The Yellow Envelope Act expands the employer definition to firms substantially controlling working conditions.
The Chungnam National Labor Relations Commission on April 2 reviewed cases involving the Korea Institute of Nuclear Safety, the Korea Atomic Energy Research Institute, the Korea Asset Management Corp., and the Korea Research Institute of Standards and Science. These principal contractors had not posted notices of negotiation requests from subcontractor unions for seven days after receiving them, as required by the new law. The contractors argued that the unions failed to outline specific agenda items or working conditions needed to determine employer status.
The unions brought the cases to the commission, which recognized the contractors' employer status in its first such ruling since the law's enforcement. The decision requires the contractors to post the notices. According to Yonhap News Agency, the board planned to notify the parties that evening, though proceedings could be postponed.
The Yellow Envelope Act, effective last month, aims to broaden workers' bargaining rights by holding prime contractors accountable for subcontracted labor they substantially control. As of March 30, 267 labor negotiation cases had been submitted to relations boards nationwide, Rep. Cho Ji-yeon of the main opposition People Power Party said. Further disputes from the law are expected to continue.
