Minister pushes back on labor tribunal backlog claim; doubles down on mandatory retirement age extension this year

Minister of Employment and Labor Kim Young-hoon answers lawmakers' questions at a national audit session of the National Assembly's Climate, Energy, Environment and Labor Committee on Tuesday. [Yonhap]
Minister of Employment and Labor Kim Young-hoon answers lawmakers' questions at a national audit session of the National Assembly's Climate, Energy, Environment and Labor Committee on Tuesday. [Yonhap]

Employment and Labor Minister Kim Young-hoon said Tuesday that fears of a "bargaining tsunami" or a surge in strikes following the enactment of the yellow envelope law — the revised Trade Union Act — have not materialized. He also said the ministry would refine its interpretive guidelines to make them easier to apply in the field.

Speaking at the Ministry of Employment and Labor's national audit before the National Assembly's Climate, Energy, Environment and Labor Committee, Kim pushed back against People Power Party lawmaker Lee Jong-bae's claim that the yellow envelope law was causing delays at labor relations commissions. "Cases related to the yellow envelope law account for no more than 2.7 percent of labor commission caseloads," Kim said.

Kim attributed the overall rise in labor commission cases to factors such as the spread of AI and growing awareness of workers' rights, saying these trends had driven a jump in cases involving unfair labor practices and workplace harassment.

"Some media outlets predicted that once the yellow envelope law passed, it would mean a year-round bargaining tsunami and a paradise for strikes — but that has not happened," Kim said. "We will do our utmost to ensure the law takes root properly."

Kim said the ministry would continue supplementary research to reduce legal uncertainty. When PPP lawmaker Park Su-min raised concerns about ambiguity in the interpretive guidelines, Kim said the ministry would "continue supplementary research so the guidelines can be readily accepted in the field." On concerns about disputes between public-sector prime contractors and subcontractors, he said the ministry would "play an active role in facilitating smooth labor-government consultations."

On the recent rise in working days lost to industrial action, Kim said the bigger driver was the prolonged nature of wage and collective bargaining negotiations rather than the yellow envelope law itself. Responding to PPP lawmaker Kim Hyeong-dong, Kim acknowledged that some might link Hyundai Motor Company's strike — after years without one — to the yellow envelope law, but said "the increase in working days lost reflects more the prolonged nature of ordinary wage and collective bargaining negotiations than the yellow envelope law."

He added that the shipbuilding industry's shift from a downturn to a boom had created internal distribution disputes that were stretching out wage negotiations. "We take the rise in working days lost seriously and will strengthen on-site guidance," Kim said.

Kim doubled down on the need to pass legislation extending the mandatory retirement age before the end of the year. When PPP lawmaker Kim Wi-sang raised the mismatch between the retirement age and the age at which pension benefits begin, Kim said, "I think it is already too late to start discussing this today," adding that the retirement age extension bill "must be passed this year without fail."

He then said that because discussions had matured over a long period through channels including a National Assembly TF, "once we judge that only a decision remains, the government will promptly put forward its own proposal."

Kim also pledged a firm response to illegal activity at construction sites. When PPP lawmaker Yoon Jae-ok raised the issue of violence at construction sites, Kim said, "No government tolerates illegal conduct," and urged anyone with information to come forward. "We will protect whistleblowers to the end — if there is illegal activity, please report it actively. Even without a tip-off, we will visit sites and investigate conditions ourselves," he said.

Kim struck a cautious note on exempting research and development workers in mega special economic zones from the 52-hour workweek limit. When PPP lawmaker Lee Cheol-gyu asked about the possibility of applying such an exemption to semiconductor R&D workers in a Honam special zone, Kim said there were "many aspects that need to be carefully reviewed."

"For the mega special zones to succeed, corporate productivity and the protection of workers' health must be balanced," Kim said, adding that the government would responsibly coordinate dialogue on the issue.

On the "single-agenda social dialogue" on the mega special zone legislation that began in September, Kim said the government would serve as "a facilitator of dialogue — not with a predetermined outcome, but to produce results through the conversation itself."


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