Labor Disputes Ignite in Asia’s Retail Sector: What’s Behind the Yellow Envelope Law?

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[Anchor] Since the Yellow Envelope Law went into effect, labor disputes have spread into the retail sector. A freight worker in the convenience-store supply chain has died, and the dispute over which entity should be treated as the employer required to engage in collective bargaining has intensified. Department stores and duty-free operators have also been named as bargaining counterparts for employees of in-store brands, widening the impact across retail. This is O Juhyun reporting. [Reporter] Since the law’s implementation, demands for bargaining have multiplied across the retail industry. The KCTU-affiliated Freight Solidarity has pressed BGF Retail to negotiate improvements for freight workers handling logistics for CU convenience stores; a union member died amid that conflict. The dispute centers on a so-called multi-tiered subcontracting structure that connects convenience store headquarters to freight workers. Freight workers are formally contracted as sole proprietors. Freight Solidarity argues that BGF Retail is the principal employer, while BGF Retail says its logistics subsidiary, BGF Logis, is the contracting party. Similar logistics arrangements exist across other convenience store networks, so this case could spread industry-wide. The Yellow Envelope Law’s effects are rippling through retail. On April 21, the Seoul Regional Labor Relations Commission ruled that Lotte and Hyundai department stores, and Shilla and Shinsegae duty-free shops, must enter collective bargaining with the Department Store/Duty-Free Shop Sales Service Union. The commission also concluded that department stores and duty-free operators can be considered employers of staff who work for cosmetics brands inside their stores. [Kim So-yeon / Chair, Department Store/Duty-Free Shop Sales Service Union] There is no longer room for debate. Department stores and duty-free operators are the employers obligated to bargain with brand employees working in their stores. They must now proceed through the bargaining process and negotiate in good faith as the law requires. Department stores and duty-free operators say they have begun reviewing follow-up measures in response to the labor commission’s ruling. As disputes over employer status grow, officials warn that industry-wide strikes could follow. This is O Juhyun for Yonhap News TV. [Video shooting: Choi Seung-yeol] [Video editing: Song A-hae] [Graphics: Kim Dong-jun] For Yonhap News TV story inquiries and tips: KakaoTalk/Line jebo23 O Juhyun (viva5@yna.co.kr)