Employment and Labor Minister Kim Young-hoon recently stated that under the newly established labor dispute guidelines, the Samsung Electronics union’s strike demanding a performance bonus tied to operating profit would be considered illegal. However, he clarified that since Samsung Electronics and the union have already agreed on performance bonus criteria, the new guidelines would not retroactively apply to their existing collective agreement.
On September 3, the Labor Ministry detailed guidelines on disputes over performance bonuses and management decisions, coinciding with the implementation of the Yellow Envelope Law. The minister then provided a direct assessment of the Samsung Electronics strike, a representative case. While acknowledging the need for flexibility in working hours for the semiconductor mega-cluster, he opposed unlimited exceptions.
During an appearance on SBS Radio’s “Kim Tae-hyun’s Political Show” on Tuesday, Minister Kim confirmed that the Samsung Electronics union’s strike demanding a performance bonus would indeed be illegal under the new guidelines. He expressed skepticism about starting negotiations by allocating a fixed percentage of operating profit for bonuses.
The minister explained that while not all performance bonuses are excluded from labor disputes, he questioned the wisdom of automatically setting aside a portion of profits before other considerations. He warned that such an approach could potentially discourage investment and weaken corporate competitiveness.
The Labor Ministry’s September 3 announcement of Implementation Guidelines for Labor Disputes Regarding Management Performance Bonuses stated that while labor and management can voluntarily negotiate performance bonuses based on corporate profits, such demands are not subject to mandatory negotiations, Labor Relations Commission mediation, or strike actions.
It’s worth noting that the existing agreement between Samsung Electronics and its union – which stipulates a special performance bonus of 10.5% of the semiconductor division’s business performance – remains valid. The new guidelines do not nullify existing collective agreements or apply retroactively to past strikes.
Minister Kim sets boundaries on unlimited exceptions for semiconductor industry labor rules
Addressing the labor hour exemptions for the Honam semiconductor mega-cluster, Minister Kim expressed support for allowing research staff to work intensively when inspiration strikes.
However, he cautioned against unlimited exemptions, emphasizing the need to balance flexible working hours with worker health protections and productivity enhancements.
The Labor Ministry is currently evaluating whether to expand the scope of special extended working hours beyond semiconductor research positions. Minister Kim indicated that while no specific government proposal has been finalized, he intends to initiate tripartite discussions involving labor, management, and government representatives to address these issues.
