SEOUL — South Korea’s parliament expanded protection for subcontracted workers on Sunday by passing new union rules, shrugging off concerns by businesses that they might undermine competitiveness and worsen labor relations.
Since liberal President Lee Jae Myung came to power in June, his Democratic Party, which controls parliament, has pushed to amend the labor union law to provide more support for workers.
This reverses the stance of former President Yoon Suk Yeol’s conservative administration, which took a hard line on unions and had vetoed the bill.
Lee, who has expressed support for the bill, is expected to sign it into law. He is travelling for summits in Japan and the US
The amended Trade Union and Labor Relations Adjustment Act allows subcontracting firms’ labor unions to make demands of client companies directly. It restricts the ability of employers to seek damages for strike-related disruptions and broadens the liability for executives who do not participate in collective bargaining.
Lawmakers promoting the bill have dubbed it the “Yellow Envelope Act”, referring to envelopes supporters use to send money to union workers paying legal damages for striking.
Parliament passed it on Sunday morning after the conservative opposition delayed voting overnight, criticising it as hampering businesses in Asia’s fourth-biggest economy.
Some business groups have expressed concerns that the measure could hurt South Korea’s investment environment.
