Should we negotiate or wait and see? Temperature difference in distribution industry due to ‘Yellow Envelope Law in one month’

BR Korea direct employment and Coupang CLS negotiations accepted… proactive response
Most of the industry is “keeping a close eye on the situation”… Cadastral map requiring prior inspection

As one month has passed since the implementation of the Yellow Envelope Act (Amendment to the Labor Union and Labor Relations Adjustment Act), which expanded the right of subcontracted workers to negotiate with the main contractor and limited liability for strike damages, the distribution industry's response was divided into three parts. While some companies resolve legal disputes in advance or initiate negotiation procedures, many companies are monitoring the situation without clear guidelines.

According to Donghaeng Media Times coverage on the 16th, each company in the distribution industry is responding to the characteristics of the industry by switching to direct employment, accepting negotiation within the law, and waiting and waiting for the situation.

The most proactive types are companies that changed their employment structure before legal disputes arose. BR Korea changed its employment structure to reduce the possibility of legal disputes. On the 8th of this month, the Chungju branch of the Ministry of Employment and Labor and the labor union announced a joint declaration between labor, management, and government, and directly hired all 180 production workers from HB Corporation, a partner company at the Eumseong factory in North Chungcheong Province. This is the result of three months of labor-management consultation.

Baedal Minjok and E-Mart are examples of cases in which risks were raised and responded proactively even before the enactment of the Yellow Bag Act. Woowa Brothers, the operator of Baedal Minjok, has regularized negotiations with the Delivery Platform Labor Union through its subsidiary Woowa Youth since 2020. Since 2013, E-Mart has converted its subcontracted and dispatched workforce to direct employment. At that time, more than 10,000 people were transferred to the headquarters.

Some companies have accepted negotiation demands in accordance with legal principles. A representative example is the courier industry, where subcontractor unions have continued to be active. Under the Trade Union Act, the primary office that receives a request for negotiation must announce this, and if multiple unions exist, the representative negotiating union must be selected through the process of unifying the negotiation channel. CJ Logistics, Hanjin Express, Lotte Global Logistics, and Coupang CLS are currently waiting for the representative union selection process after receiving and responding to requests for negotiations from five courier unions. Industry officials said, “We will proceed with the negotiation process in good faith in accordance with relevant laws and regulations.”

“Avoiding negotiation is a greater risk”… Check the contract structure first

Most distribution companies have not received any requests for negotiations yet and are keeping an eye on the situation. However, the convenience store industry, such as GS Retail and BGF Retail, and e-commerce platforms, such as Musinsa, Avery, and Curly, have a high proportion of outsourced logistics, so guidelines need to be established. The food service industry, including Samsung Welstory, Our Home, and Hyundai Green Food, also has a large number of subcontractors.

Each company is taking a cautious stance. An industry official said, "As the distribution industry is intertwined with various stakeholders such as partners, franchises, and logistics, we will respond carefully by examining the impact of system changes on the field."

Concerns from the field were also raised. Industry officials pointed out that “it is difficult to prepare proactive measures in a situation where there are no clear cases,” “reckless demands may arise,” and “the law was implemented while both workers and companies were underprepared.”

Experts advise that even if a request for negotiation has not yet been received, subcontract agreements, etc. should be reviewed in advance. Attorney Bang In-tae of Daeryun Law Firm pointed out, “It is natural for companies to have difficulty understanding the introduction of an order that is completely different from the existing user concept,” and added, “Now is not the time to worry about whether to accept negotiations, but a time to consider each negotiation agenda.”

Attorney Bang went on to say, “The extent to which a worker is dependent on the primary contractor claiming to be the employer is a key indicator in determining usability,” and added, “If the contract focuses on the work itself, rather than a contract that focuses on the outcome, and gives detailed instructions on business hours, dress code, and work processing processes, or if the service fee is calculated based on the number of people and wages, you may be exposed to risk.”

He added, “Risks are more likely to arise from unprepared negotiation or avoidance than from incorrect negotiation,” adding, “It should be recognized as a problem not only in the human resources department but also in the overall management, which is connected to production, logistics, and legal affairs.”

Reporter Hwang Jeong-won (garden@sidae.com)

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Should we negotiate or wait... Temperature difference in distribution industry due to ‘Yellow Envelope Law in one month’ (link)