Yellow Envelope Act Enforcement Heralds Restructuring of Retail Labor Relations

With the enforcement of the Yellow Envelope Act (amendment to the Labor Union Act) on the horizon, labor-management relations in the retail industry are entering a new phase. As the possibility of legally recognizing the right of subcontracted and specially employed workers to negotiate with primary contractors opens up, the issue of 'primary contractor employer status' has emerged as a major management risk within logistics systems operated under multi-layered subcontracting structures. The intensification of labor-management conflicts surrounding the worker status of platform workers is further fueled by the government's push to enact the 'Basic Law on Workers' Rights' package.

The CU logistics strike has been provisionally settled, temporarily resolving supply chain disruptions. Following all-night negotiations, the Cargo Truckers' Union and BGF Logistics reached a provisional agreement that includes a partial increase in transportation fees, extended holidays, and provisions related to damages. The blockade of the logistics center is expected to be lifted. However, discussions continue regarding the criteria for determining primary contractor employer status and the scope of negotiation for specially employed workers, issues brought to the forefront by this conflict.

These debates have become more complex following the enforcement of the Yellow Envelope Act. While the revised Labor Union Act leaves room for primary contractors to be negotiation targets for subcontracted and specially employed workers if they exert substantial control over working conditions, specific judgment criteria remain unclear, leading to conflicting interpretations in practice. Professor Park Ji-soon of Korea University Law School points out the need for stringent, step-by-step verification before recognizing primary contractor employer status, explaining that the process should first involve establishing worker status under the Labor Union Act, followed by claims of the primary contractor's 'substantial control.' A prevailing view suggests that taking collective action without going through the Labor Relations Commission's judgment process is legally difficult to accept.

On-site conflicts escalated sharply after a Cargo Truckers' Union member died in an accident involving a substitute transport vehicle at the Jinju CU logistics center protest site on the 20th. This incident led to the blockade of logistics centers and production facilities, causing damage to franchisees through the suspension of ready-to-eat meal supplies and a significant drop in sales at some stores. Accumulated conflicts within the outsourced logistics structure surfaced following the accident.

Following the agreement, normalization and follow-up measures remain critical tasks. BGF Retail plans to assess damages incurred by store owners and prepare support measures. The logistics system is undergoing restoration efforts, aiming for normal operations within the week, with a phased restart centered around the Jincheon logistics hub.

Similar negotiation demands are expanding. Recently, the Seoul Regional Labor Relations Commission ruled to recognize the worker status of truck drivers and the employer status of primary contractors in cases involving CJ Logistics and Hanjin. These precedents increase the likelihood of appeals being accepted by labor commissions in other regions, and claims for the application of the Yellow Envelope Act could be raised again if negotiations break down.