Major umbrella union holds massive rally over subcontractor bargaining rights

A major umbrella labor union staged a large-scale rally in downtown Seoul on Wednesday, demanding businesses engage in direct negotiations with subcontracted workers.

According to police, around 5,000 members of the Korean Confederation of Trade Unions participated in the rally held near Gwanghwamun Square. The labor group estimated a higher turnout of approximately 10,000.

Participants then marched toward the presidential office, calling on the government to resolve the ongoing crisis at financially troubled discount store chain Homeplus Co.

The retailer, wholly owned by private equity firm MBK Partners, has been financially strapped by a prolonged slump and entered court-led rehabilitation in March 2025.

Throngs of unionized workers under the umbrella union, including members of the Korean Metal Workers’ Union, walked out of their workplaces to join the rally.

During the rally, the KCTU urged businesses to directly negotiate with subcontracted workers. It has argued that many businesses have resisted such negotiations despite a recently enacted revision to the labor law designed to expand subcontracted workers’ bargaining rights.

The so-called yellow envelope act went into effect in March, requiring prime contractors to engage in direct negotiations with subcontracted workers.

Yang Kyeung-soo, head of the KCTU, earlier said unions under the organization’s wing requested negotiations with over 400 primary contractors in the past four months, but actual negotiations have taken place at only four businesses. (Yonhap)

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