Seoul: President Lee Jae Myung stated Wednesday that labor unions' collective actions should stay within "certain limits" to avoid causing "serious pain" to others. This remark came during a Cabinet meeting following the breakdown 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 emphasized the importance of maintaining boundaries in collective labor actions. He noted that while labor unions are entitled to pursue their interests through collective action, it should not lead to "serious harm" to others. He suggested that the government might need to assist society in observing those boundaries and act when they are crossed. He reiterated the purpose of the three fundamental labor rights-freedom of association, collective bargaining, and collective action-is to protect workers as vulnerable members of society, not to serve a select few.
President Lee also underlined that alongside workers' rights, creditors need to recover their investments, and consumers and related businesses should be safeguarded. He mentioned the government's role in supporting companies' operating profits through tax cuts, facility support, institutional revisions, and diplomacy.
He pointed out that investors cannot claim a certain share of operating profits as a collective public share before taxes, referring to the labor union's demand for a fixed portion of operating profits for bonuses. The presidential office expressed "deep regret" over the collapse of government-mediated negotiations on bonuses tied to Samsung's record earnings, urging continued efforts to avoid the strike, which could severely impact the company and the nation.
"We deeply regret the breakdown of the post-mediation process by the National Labor Relations Commission," stated Cheong Wa Dae. "We urge both parties to strive until the final deadline to reach a labor-management agreement, considering the potential economic impact," it added.
After negotiations failed, the labor union confirmed plans to strike on Thursday. The union seeks performance-based bonuses linked to the tech giant's AI-related semiconductor business amid the ongoing global memory supercycle. Samsung has proposed bonuses equal to 10 percent of operating profit, whereas the union demands fixed bonuses of 15 percent of the semiconductor division's operating profit.
Industry officials warned a full-scale strike could have an astronomical impact on South Korea's economy, with potential losses up to 100 trillion won (US$66.98 billion). However, there remains a possibility of a breakthrough before the strike, as the government may invoke an emergency adjustment measure to suspend the strike for up to 30 days if deemed likely to severely harm the national economy or disrupt citizens' daily lives.