Hyundai steel reaches first agreement with subcontractors after labor law change
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Hyundai Steel in South Korea and four of its subcontractors reached a collective bargaining agreement, marking the first such resolution since the passage of the revised Labor Union Act, known as the “Yellow Envelope Law.”
The agreement came six months after the law took effect in March.
The Ministry of Employment and Labor reported that representatives from Hyundai Steel and the labor unions of its subsidiaries, Hyundai ITC, Hyundai IEC, Hyundai IMC, and Hyundai ISC, signed the agreement at the Hyundai Steel plant in Dangjin. They signed a document called the “2026 Primary and Secondary Contractor Negotiation Agreement.” Previously, the Central Labor Committee recognized separate bargaining units for the four subsidiary unions and the labor unions of Hyundai Steel’s partner companies.
Hyundai Steel then conducted negotiations with each unit. Discussions centered on industrial safety, an area where the Labor Committee had affirmed Hyundai Steel’s role as an employer responsible for subcontractor safety. Hyundai Steel and the subcontractor unions agreed to continually improve safety and health management systems within the subsidiaries. They also committed to developing a mid- to long-term plan to raise overall safety standards.
The Cheonan branch of the Daejeon Regional Employment and Labor Office supported the negotiations with working-level meetings and by chairing tripartite meetings. Labor Minister Kim Young-hoon stated that this agreement demonstrates the intent of the revised labor law, dialogue and cooperation between primary and secondary contractors, and will help make Hyundai Steel’s worksite safer.
