Ministry: Honam semiconductor project not subject to union bargaining

The Ministry of Employment and Labor has declared that the government's 'Honam Semiconductor Mega Project' is not a subject for collective bargaining with unions. This decision, communicated in a statement late on July 13, clarifies that business decisions such as corporate investment and factory expansion do not fall under the scope of collective bargaining or labor disputes as defined by the revised Labor Union and Labor Relations Adjustment Act, often referred to as the 'Yellow Envelope Law.'

The ministry explained that such strategic business decisions are generally not considered to have a substantial and concrete impact on working conditions. However, it added a caveat: if the implementation of these business decisions leads to significant and specific changes in working conditions, then those specific conditions could become subjects for negotiation.

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Business decisions such as investment and factory expansion are not considered to have a substantial and concrete impact on working conditions, and thus are not included in collective bargaining and labor disputes under the Yellow Envelope Law.

This ruling comes after Samsung Electronics' super-corporate union asserted its right to include the mega-project in its upcoming negotiations. The union had conducted a survey showing 84% of its members opposed the project. They argued that the project's scale, potentially affecting the work locations and treatment of tens of thousands of employees, necessitates union input during the negotiation process for the following year.

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As this project can affect the work locations and treatment of tens of thousands of people, we will address related issues in next year's negotiations.