Minister of Trade, Industry and Energy Kim Jeong-gwan met directly with Federation of Korean Trade Unions (FKTU) Chairman Kim Dong-myeong on the 30th and said, "The entire industrial sector faces a massive crisis as the Middle East war drags on," proposing that "unnecessary conflicts at labor-management sites should enter a ceasefire for the time being." It was the first time in 20 years, since 2006, that a trade minister visited the FKTU headquarters to meet its chairman face to face. The reason the minister responsible for corporate and industrial policy held this unusual meeting and requested a truce in labor-management conflicts is likely because labor-management stability is that urgently needed to overcome the complex crisis originating from the Middle East. President Lee Jae-myung also emphasized social dialogue at a recent labor policy forum held to mark the launch of the first Economic, Social and Labor Council, saying, "To turn a vicious cycle into a virtuous one, we must sit down face to face and have a sincere conversation about each other's situations."
At a time when the Middle East war is prolonged, the behavior of some Samsung affiliate unions raising strike flags is throwing cold water on the cooperative mood among labor, management and the government. The Samsung Biologics (207940.KS) union announced its first-ever general strike since the company's founding in 2011, demanding a 14% wage increase and bonus payments equivalent to 20% of operating profit. The Samsung Electronics (005930.KS) union has resolved to stage an 18-day prolonged strike in May, insisting on the "permanent abolition of the performance bonus cap." At a time when semiconductor competition has become a survival game and the bio industry is emerging as a future growth engine, strike declarations by high-salaried employees are amplifying not just public dismay but also anxiety.
The Korean economy faces a triple threat of high oil prices, a weak won and high inflation. Even if the Iran war ends, high oil prices are likely to persist. Last week, the Organisation for Economic Co-operation and Development (OECD) cut its growth forecast for Korea this year from 2.1% to 1.7%, citing the vulnerability of an economy that lacks natural resources and is highly dependent on exports. This is no time for unions to indulge in collective selfishness and focus on securing their own share. What is needed now is not a labor-management power struggle but "shared responsibility for crisis management." For the trade minister's ceasefire proposal to translate into action, the government must exercise proper labor-management leadership. Labor must refrain from excessive demands, and companies must show sincerity in sharing the burden. Now is not the time for labor and management to stand against each other, but to put their heads together for survival.