Justice Party tables bill aimed at protecting labor unions against damage suits

SEOUL– The minor progressive Justice Party (JP) proposed a bill Thursday that would limit companies from filing compensation suits against labor unions for losses incurred during strikes.

 

Under what is dubbed the “yellow envelope bill,” companies would be banned from filing lawsuits against labor unions and unionized workers for damages caused during collective action with the exception of those incurred by violence or destructive action.

 

The proposal is a revision of an earlier proposal that expands the scope of beneficiaries to include freelancers and platform workers.

 

“While the strike by the subcontract workers union at Daewoo Shipbuilding & Marine Engineering Co. has ended, the union faces a colossal 47 billion won (US$34 million) damages suit,” Lee Eun-joo, the JP’s interim chief told a press conference.

 

“A 47 billion won compensation suit filed against a subcontract union that consists of laborers who receive minimum wage literally threatens the union’s existence,” Lee said, noting how the shipbuilder has filed a compensation suit against five members of the union following their 51-day strike.

 

A total of 56 lawmakers sponsored the bill, including all six members of the JP as well as 46 lawmakers of the main opposition Democratic Party.

 

The proposal is expected to face hurdles in being passed, with the ruling party and business circles voicing concerns over the bill giving excessive immunity to unionized workers and potentially hurting smaller businesses.

 

“While conglomerates have the strength to withstand, who will take responsibility for small businesses if they go bankrupt due to repeated illegal strikes that are exempted?” People Power Party Rep. Lim Lee-ja said during a parliamentary labor committee meeting.

 

Labor Minister Lee Jeong-sik, who also attended the meeting, said the ministry will look into different cases involving compensation suits filed against unionized workers ahead of the legislation.

 

The term “yellow envelope bill” was named after a person donated 47,000 won enclosed in a yellow envelope to unionized Ssangyong Motor Co. workers following a 2013 court ruling that ordered them to pay 4.7 billion won for causing losses in a strike.

 

 

Source: Yonhap News Agency

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