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🇰🇷 South Korea /Elections & Politics

President Lee: Including management rights in labor disputes leads to endless conflict

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • President Lee Jae-myung questioned the Samsung Electronics super-union's demand to include semiconductor investment plans in collective bargaining.
  • He argued that including management rights like investment decisions in labor disputes would create endless precedents and called for clear criteria.
  • The Minister of Employment and Labor stated that business decisions like large-scale investments are not subject to labor disputes, aligning with the ministry's stance.

President Lee Jae-myung expressed surprise and concern over the Samsung Electronics super-union's demand to make the company's semiconductor investment plans in Honam a subject for next year's collective bargaining. During a State Council meeting, Lee questioned the logic, stating that if such decisions are subject to labor disputes, then virtually all management activities could be challenged.

If you build a factory in Gwangju, I might be transferred there, so this is a labor dispute.

— Lee Jae-myungIllustrating the potential for disputes if investment decisions are included in labor negotiations.

"If you build a factory in Gwangju, I might be transferred there, so this is a labor dispute," Lee speculated, illustrating the potential for endless disputes. He pointed out that even issues like inheritance could become contentious if a buyer is perceived as potentially worsening labor conditions. "Ultimately, we need to set certain criteria," he urged, emphasizing the need for clear boundaries in labor negotiations.

Ultimately, we need to set certain criteria.

— Lee Jae-myungEmphasizing the need for clear boundaries in labor disputes.

Lee, who has a background in labor law, noted that the scope of labor disputes seems to be expanding excessively. He specifically questioned whether demanding a certain percentage of operating profit as performance pay falls under the purview of labor disputes, stating his belief that it generally does not. This comment was made in reference to the super-union's demand for profit sharing.

Samsung Electronics' business decision to build a large-scale semiconductor plant in Gwangju is not considered a subject for labor disputes.

— Kim Young-jooStating the Ministry of Employment and Labor's position on the matter.

Minister of Employment and Labor Kim Young-joo affirmed the ministry's position, stating that Samsung Electronics' business decision to build a large-scale semiconductor plant in Gwangju is not considered a subject for labor disputes. He added that allowing labor unions to dispute such strategic business decisions goes against the intent of revising the Labor Standards Act. The ministry has previously issued statements to this effect.

Allowing labor unions to dispute such strategic business decisions goes against the intent of revising the Labor Standards Act.

— Kim Young-jooExplaining the ministry's view on the scope of labor disputes.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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