President Lee Jae-myung said Wednesday that "when some organized workers make excessive or unjustified demands, thinking only of saving themselves, and draw public condemnation, they end up harming other workers as well." Speaking at a senior secretaries' meeting at the presidential office on the 30th, he emphasized that "what is needed is a sense of responsibility and solidarity to build a world where not just 'me alone' but all workers and all citizens can thrive together." The remarks are being interpreted as pointed criticism aimed at the Samsung Electronics (005930.KS) union, which recently announced a general strike while demanding performance bonuses worth 45 trillion won ($33 billion).
It is no ordinary matter for the president to deliver such a sharp rebuke against the conduct of certain unions one day before Labor Day. Unions at major conglomerates, including Samsung Electronics and Samsung Biologics (207940.KS), appear focused solely on maximizing performance bonuses by wielding the threat of strikes, with little regard for corporate competitiveness, subcontractors, or the younger generation. Their actions are particularly difficult to justify given the dual structure of the labor market between large and small firms and between regular and non-regular workers. According to data released by the Ministry of Employment and Labor (MOEL) the same day, non-regular workers' wages stand at 65.2% of those of regular workers, marking the widest gap in a decade. While regular employees at large corporations enjoy high wages and job security, non-regular workers suffer from low pay and employment instability, and major companies hesitate to hire new staff.
Moreover, while the technological transformation driven by artificial intelligence (AI) and robotics is reshaping the labor market, some militant unions remain immovable in their reflexive resistance. A telling example is the Kia (000270.KS) union following Hyundai Motor (005380.KS) in demanding a "guarantee of total employment when robots are introduced." Blocking technological innovation will cause companies to fall behind in global competition, leading to even greater job losses. President Lee made the same point when he stressed on the same day that "the AI transformation will expose labor and industrial sites to fundamental changes going forward," adding that "overcoming such a critical challenge requires a spirit of coexistence and cooperation."
This year's Labor Day carries special significance, as its Korean name has been changed from "Workers' Day" for the first time in 62 years and it has been elevated to an official public holiday. The time has come for the government, labor, and management to embark on bold reforms to advance labor standards. The outdated seniority-based wage system must be overhauled toward a job- and performance-based structure, and rigid working-hour regulations must be made more flexible, creating an environment in which companies are no longer afraid to hire. We hope this newly reborn Labor Day will serve as an occasion to open an era of labor-management cooperation.
