Dear workers and employers across the nation,
This is Young-hoon Kim, Minister of Employment and Labor.
On July 28, the Amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act was passed by the National Assembly’s Environment and Labor Committee.
This Amendment is aimed at meeting urgent demands on industrial worksites. Since the first bill was introduced in 2020, the passage of the Amendement has come after long discussions and careful deliberation.
The government will make every effort to faithfully carry out the legislative intent of this amendment in order that it may become the cornerstone for building “a labor-management relationship of participation and cooperation” and achieving “genuine, sustainable growth.”
This Amendment opens the path to dialogue, lays the foundation for coexistence, and prepares for future growth.
1. The Amendment is Aimed at Promoting Dialogue
In a labor environment where subcontracting structures have become multilayered and the gap between institutions and reality has not been resolved, many conflicts and disputes at worksites have stemmed from the structural impossibility of dialogue itself.
Subcontracted workers, though working at the worksites of principal contractors, for their business, and alongside principal employees, could not even engage in dialogue with the principal employer who in fact had substantial decision-making power over their working conditions.
The heart of this amendment is to align power with responsibility.
Those who exercise substantial power in the workplace must bear the corresponding responsibility. By opening the door to legitimate discussions on decisions that significantly affect working conditions, this Amendment is expected to further promote cooperative dialogue between labor and management.
The government fully understands the questions on worksites on how subcontractors and principal contractors will negotiate and what procedures they must follow. While respecting the principle of labor-management autonomy, the government will act as a guarantor, ensuring institutional trust and predictability so that labor relations may not fall into uncertainty.
Based on the factors already considered by labor commissions and the courts in recognizing the employer status of principal contractors, the government will prepare detailed standards and procedures for negotiation, taking into account specific workplace cases. We pledge to prepare thoroughly so that stable bargaining practices between labor and management can take root.
2. The Amendment is Aimed at Coexistence
In order to respond to changes in the industrial ecosystem and global supply chain crises, the international community increasingly demands responsible relationships between principal contractors and subcontractors.
Responsible management and responsible transactions—such as the European Union’s Corporate Sustainability Due Diligence Directive—have become global standards.
Following the principle of labor-management autonomy, labor and management must take responsibility, engage in dialogue, and resolve issues for themselves. This Amendment will help principal contractors and subcontractors move away from disconnection and toward cooperation, shifting from a vertical structure to “horizontal” dialogue.
In doing so, the Amendment will support sustainable coexistence within Korea’s industrial ecosystem.
3. The Amendment is aimed at Genuine Growth
For “genuine growth,” labor must move forward together with management.
In international trade issues, including those raised by the ILO and EU, “labor rights” are a central matter of concern. The OECD has also identified the dual structure of Korea’s labor market and its inequality as fundamental causes of the nation’s low growth.
This Amendment lays the foundation for labor and management to advance together.
By moving away from conflict and adopting structures that resolve problems productively, the risks of disputes will be reduced. This will strengthen corporate competitiveness while improving workers’ conditions, creating a virtuous cycle.
Dear citizens, and all parties in labor and management,
We are keenly aware that both expectations and concerns exist regarding this Amendment.
① During the preparation period, the government will listen carefully to the views of labor, management, and experts. We will ensure that the legislative intent is properly realized at worksites and that stability in labor relations is secured.
We regard the period between passage and implementation as a time for dialogue, coordination, and compromise. In cooperation with the National Assembly, we will carefully examine both worksites and institutions, hold expert discussions, gather workplace opinions, and prepare manuals and guidelines. Together, we will promote necessary measures to support implementation at worksites.
② I call upon both labor and management.
To the business community: please take advantage of this Amendment as an opportunity for structural change and innovation. We request that you fulfill your responsibility so that this can be a turning point for building a new order in labor-management relations.
To the labor community: this Amendment has made it possible for labor and management to discuss matters that were previously difficult to negotiate into an institutional framework.
In terms of liability for damages, responsibility has been clarified in proportion to power, providing a clear basis for reasonable judicial interpretation. With much of the legal uncertainty now resolved, we urge you to establish a culture of dialogue and compromise based on autonomy and responsibility, in line with the spirit of the law.
The government will faithfully cooperate with the National Assembly so that sufficient deliberation may continue throughout the remaining legislative process. We will also fully assume our responsibility to ensure that the amendment does not undermine predictability in the labor-management bargaining order and does not create uncertainty in workplace application.
Thank you.