Korean unions triumph in securing landmark labour reforms to protect supply chain workers

What are the key changes to the TULRAA and how will they impact workers?

Seil Oh, FKTU: The amendment has the potential to revolutionise labour relations by expanding the definition of ’employer’ to include “an entity in a position to substantially and specifically dominate and decide on working conditions.” This provides a legal foundation for subcontracted workers to negotiate directly with prime contractors who exert real influence. Additionally, the law limits liability for damages from industrial action, breaking the shackles of provisional seizures that threatened the very existence of labour unions.

Mikyung Ryu, KCTU: The amendments also broaden the scope of “industrial disputes” to include management decisions affecting working conditions, such as mass layoffs and restructuring. Critically, the law removes provisions that prevented platform workers and independent contractors from forming unions – a restriction repeatedly criticised by the ILO. Workers’ liability for damages from strikes will now be individually assessed based on factors including their role, contribution, and wage level.

How did unions campaign for these changes?

Mikyung Ryu, KCTU: The nickname “Yellow Envelope Law” derives from the 77-day Ssangyong Motors strike in 2009 led by our affiliated Korean Metal Workers Union, where workers faced billions of won in unfair damage compensation claims. Citizens showed solidarity by sending donations in yellow envelopes to support these workers. Following this and similar experiences, we pursued a multi-pronged campaign. We strategically organised workers beyond legal limitations while challenging restrictions in court. When precarious and disguised self-employed workers formed unions, and the Ministry of Labour rejected their registration, we continued organising and litigating. We also conducted public campaigns for “Trade Union Rights for ALL workers” while filing complaints with the ILO and UN human rights bodies.

Seil Oh, FKTU: This victory is the fruit of a long struggle spanning over 20 years. Throughout this period, excessive damage claims were repeatedly used to suppress legitimate union activities. We at the FKTU, along with the broader labour community, have persistently pushed for legislation to change this unjust reality. Internally, we formed a TULRAA task force to gather voices from the ground and develop policy alternatives. International pressure was also a significant driving force, with the ILO repeatedly recommending that the South Korean government guarantee freedom of association and recognise the concept of a de facto employer.

Can you give a concrete example of how these changes will affect supply chain workers?

Seil Oh, FKTU: The TULRAA amendment is highly significant for supply chain workers in that it codifies the core principles of responsible business conduct of the OECD Guidelines into domestic law, which affects suppliers to Korean companies. In the shipbuilding industry, subcontracted workers previously could not negotiate safety issues with the prime contractor shipyard, despite following their instructions and regulations. After the amendment, these workers can legally demand collective bargaining with the prime contractor on issues like safety equipment and payment calculations. The prime contractor can no longer terminate subcontracting agreements to dismantle unions, as this would constitute an unfair labour practice.

Mikyung Ryu, KCTU: Large Korean conglomerates increasingly rely on subcontracting, with workplaces employing 10,000+ workers having 43.7% non-regular workers compared to 28.6% in smaller workplaces. The amendment enables industrial-level bargaining that can address systemic issues. For example, subcontracting workers at Hyundai Motors are organised in a single union chapter regardless of their nominal employers, facilitating supra-enterprise level bargaining with their real employer.