The parliamentary legislation and judiciary committee on Wednesday decided to defer a decision on a pro-labor bill that aims to limit companies from making claims for damages against legitimate labor union disputes.

National Assembly Legislation and Judiciary Committee Chair Rep. Jung Chung-rae said that the decision was put on hold, citing the need for further discussions due to differences between the ruling and opposition parties.

The National Assembly passed a similar bill last year, but President Yoon Suk Yeol vetoed it given strong opposition from business lobbies and the ruling party. Even if the bill passes the plenary session, Yoon will likely veto it again.

The so-called Yellow Envelope Bill aims to guarantee bargaining rights for indirectly employed workers and prohibits litigation for damages and provisional seizures that suppress union strikes.

Essentially, the bill could make it more difficult for employers to file complaints against illegal strikes and exempt workers from liability for participating in such strikes. It also allows subcontractor employees to take labor actions against their original contractors.

The bill's history dates back to 2014 when the Supreme Court ruled a SsangYong Motor strike illegal and ordered unionized workers to pay 4.7 billion won ($3.6 million) in compensation to the company and the state.

Civic activists then delivered yellow envelopes with donations to support the SsangYong workers, raising the need to amend the trade union law in favor of striking workers.

The main opposition Democratic Party, the minor opposition Justice Party and the labor community have supported the bill, asserting it is necessary to protect workers and their right to strike. In contrast, the government, the ruling People Power Party and business groups oppose the bill, arguing it will encourage illegal strikes and harm labor-management relations and the national economy.

"The government firmly opposes this revision due to its potential to create further labor conflict and disruption," Labor Minister Lee Jung-sik said Monday.