Hyundai Heavy Industries (HD) has officially acknowledged its legal obligation to engage in collective bargaining with subcontractor labor unions, a move seen as a significant response to the Yellow Envelope Law. This law mandates that primary employers, who substantially dictate the working conditions of their subcontracted employees, are considered 'employers' themselves and thus must engage in collective bargaining with those workers' unions. The Metal Workers' Union has stated that this development follows their formal request for negotiations as a result of the law, which came into effect on October 10.

On October 10, shortly after the Yellow Envelope Law was implemented, the Metal Workers' Union sent a request to Hyundai Heavy Industries, citing that members from 37 subcontracting firms were involved. The company responded by stating that it would initiate negotiations based on requests from identified subcontractors but would only proceed with formal bargaining if its status as the employer was recognized following an evaluation of additional requests. This decision marks a pivotal moment in the shipbuilding industry, where subcontracted workers represent a substantial portion of the workforce and reflects wider shifts advocating for worker rights in South Korea.

Hyundai Heavy Industries hosts a disproportionate number of subcontracted workers compared to directly employed laborers, with approximately 22,515 subcontracted employees versus 14,293 direct hires, underscoring the relevance of the Yellow Envelope Law in reshaping labor relations within the company. The origins of this legislation stem from prior legal rulings involving Hyundai Heavy Industries, and its successful implementation of negotiations under this new law remains a critical focus for labor, management, and government alike. The company has committed to engaging sincerely in negotiations in accordance with legal frameworks and interpretations provided by the labor ministry.