Seoul: President Lee Jae Myung emphasized on Wednesday that collective actions by labor unions should uphold "certain limits" to avoid causing "serious pain" to others. This statement came during a Cabinet meeting following the collapse of last-minute wage negotiations between Samsung Electronics Co. and its labor union, just a day before the union's planned general strike.
According to Yonhap News Agency, President Lee asserted that while it is important for labor unions to exercise their right to collective action to pursue their interests, such actions must not overstep boundaries. He expressed concerns over the potential abuse of this right, which could lead to significant harm to others. Lee suggested that the government might need to intervene to ensure societal limits are respected and fulfill its duties when these limits are breached.
The presidential office expressed "deep regret" over the failed government-mediated negotiations concerning bonuses linked to Samsung's record-high earnings. The office urged both parties to persist in their efforts to avert the planned strike, warning of its potentially devastating effects not only on the company but also on the national economy. "We deeply regret the breakdown of the post-mediation process by the National Labor Relations Commission," Cheong Wa Dae stated in a release, pressing both sides to reach an agreement before the final deadline.
Despite the unsuccessful negotiations, the labor union announced its intention to proceed with the strike on Thursday. The union has been demanding performance-based bonuses linked to earnings from the tech giant's AI-related semiconductor business amid the ongoing global memory supercycle. Samsung has proposed bonuses of 10 percent of operating profit, whereas the union demands fixed performance bonuses equivalent to 15 percent of the semiconductor division's operating profit.
Industry officials have cautioned about the severe economic impact a full-scale strike could have, with potential losses estimated to reach up to 100 trillion won (US$66.98 billion). However, there remains a possibility of a breakthrough, as the government considers invoking an emergency adjustment measure. This would suspend the strike for up to 30 days if it is deemed likely to seriously harm the national economy or disrupt citizens' daily lives.