Public Sector Labor Briefing — 2026-05-02

Top 3 Issues This Week

1. KCTU May Day Rally — July General Strike Declared

• Participants: KCTU / Members from 13 regions nationwide.
• Status: On May 1st, the 136th World May Day rally was held across 13 cities. Over 10,000 members participated, condemning prime contractor bargaining avoidance by firms like CU and BGF, and announcing a general strike for July. A key demand is securing employee status for "special employment" workers.
• Conflict: The central issue is whether prime contractors must accept bargaining duties and the effectiveness of the revised Trade Union Act, which labor groups argue is being undermined by Ministry of Employment and Labor guidelines.
• Impact: If the July strike proceeds, it will likely trigger chain-reaction strike risks across the public, logistics, and service sectors.

2. Public Solidarity Union — Call for Abolition of MOEL Guidelines

• Participants: Public Solidarity Union / Target: Ministry of Employment and Labor.
• Status: On May 1st, the union held a press conference in front of the Cheong Wa Dae Sarangchae, demanding the immediate repeal of ministry guidelines that they claim neutralize the rights to prime contractor bargaining under the revised Trade Union Act.
• Conflict: The debate concerns the survival of the MOEL's administrative interpretation guidelines, which dictate the efficacy of the "Yellow Envelope Law."
• Impact: This is critical for indirect and special employment workers in the public sector to secure direct bargaining rights, affecting thousands of non-regular public workers.

3. Yellow Envelope Law — 400 Bargaining Demands Issued

• Participants: MOEL / Various prime contractors and public institutions.
• Status: According to a Yonhap News report (April 30), 400 workplaces have received bargaining demands since the law took effect. 11 of these are confirmed public sector workplaces. The government also announced plans to pay a "fairness allowance" to fixed-term public sector workers with under one year of service starting next year.
• Conflict: Disputes over administrative interpretations regarding the definition of "prime contractor" and the effectiveness of the fairness allowance (given the lack of legislation restricting the reasons for hiring fixed-term staff).
• Impact: While potentially a turning point for non-regular workers' bargaining power, labor groups criticize it as an empty gesture without measures to prevent the abuse of fixed-term contracts.

Bargaining & Labor Disputes

• Cargo Workers Union-BGF Logistics (CU Logistics): A final agreement was reached on April 30. After a three-week strike, the deal covers shipping fee increases and guaranteed rest periods for convenience store delivery drivers. The blockade of the CU Jinju Logistics Center has been lifted.
• KCTU Public Transport Union-BGF Retail: Following the Seoul Regional Labor Relations Commission’s recognition of the union’s bargaining status, the union is pushing for good-faith negotiations. This is viewed as a milestone for special employment workers.
• July General Strike: The KCTU officially declared its intent for a general strike this July at May Day rallies across 13 cities.

Safety & Labor Conditions

• "Split-up" of Small Businesses: On April 30, a group of labor attorneys held a press conference calling for special labor inspections into businesses that artificially split to remain under 5 employees, thereby avoiding labor law requirements.
• Cargo Worker Fatality: The KCTU issued a statement regarding the death of a union member during a protest at the CU Jinju Logistics Center, demanding an end to the dangerous structures in the industry.

Policy & Legislation

• Fairness Allowance: The government will provide a fairness allowance to fixed-term public workers with under one year of service starting next year. Labor groups, as reported by the Kyunghyang Shinmun, argue this is an insufficient measure lacking strict limits on the reasons for hiring fixed-term staff.
• Interpretation Guidelines Controversy: The Ministry of Employment and Labor’s current guidelines are being heavily challenged by unions for undermining the intent of the revised Trade Union Act.

What to Watch Next

• July Strike Preparations (Early-Mid May): Watch for the KCTU’s specific strike timeline and demands. The level of participation from the Public Transport Union will be a key variable.
• 11 Public Sector Bargaining Sites (May): Will actual negotiations begin at the 11 confirmed public sector sites, or will employers trigger labor commission mediation requests?
• MOEL Guideline Repeal (May-June): Whether the Ministry modifies or scraps its administrative guidelines will be a major turning point for the bargaining front.

Reader Action Items

• Verify Bargaining Procedures: Check if your organization is among the 11 public sector sites confirmed for prime contractor bargaining and review the official MOEL notices for schedules.
• Prepare for July Strike: Activists should begin checking schedules for strike-related votes and establishing procedural roadmaps for their respective branches.
• Submit Feedback on Fairness Allowance: Personnel managers and union activists should actively submit opinions to ensure that legislation limiting the reasons for hiring fixed-term staff is included in the government's policy implementation.