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Labor board recognizes ’employer status’ of principal contractors for 1st time since new labor law enactment

A labor relations board Thursday recognized for the first time the “employer status” of principal contractors since the enforcement of a new labor law aimed at broadening workers’ bargaining rights. The Yellow Envelope Act took effect last month, making prime contractors more accountable for subcontracted workers by expanding the definition of “employer” to a company that substantially controls working conditions even if it does not directly hire workers. The Chungnam National Labor Relations Commission reviewed cases involving the Korea Institute of Nuclear Safety, the Korea Atomic Energy Research Institute, the Korea Asset Management Corp., and the Korea Research Institute of Standards and Science. The four have not posted notices of negotiation requests from subcontractor unions despite the new law requiring principal contractors to put them up for seven days from the day they receive them. The contractors have argued the notices were not posted as the unions did not outline the agenda items or working conditions they want to negotiate, which they say is required in order to determine

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