New law grants subcontracted workers more rights and protects striking employees
Business groups in South Korea have expressed concerns after the passing of the new "Yellow Envelope Bill" that introduces reforms to the country's Labour Union Act.
The bill, passed at South Korea's National Assembly on Sunday, aims to broaden workers' rights in collective actions and negotiations with employers, The Korea Times reported.
According to the report, the amendments will give subcontracted and indirectly employed workers the power to negotiate directly with parent companies on matters such as workplace safety.
It also expands the scope of labour disputes to include managerial decisions, such as restructuring or plant relocation, The Korea Economic Daily reported.
Additionally, it restricts companies from claiming damages from striking workers, effectively protecting unions and workers from some damage suits when they take action against an employer's unlawful conduct.
The "Yellow Envelope Bill,", which takes effect six months after promulgation, got its name from the yellow envelopes used to send money in support of union workers.
The American Chamber of Commerce in Korea (AMCHAM), which opposed the bill when it was introduced last year, expressed concern over the new legislation.
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