With final post-dispute mediation between labor and management underway ahead of a "performance bonus strike" by Samsung Electronics' Supra-Enterprise Union, President Lee Jae-myung said, "Corporate management rights should be respected as much as labor rights." On X (formerly Twitter) on the 18th, President Lee emphasized the importance of labor-management balance, stating, "Workers must receive fair compensation for their labor, and shareholders who invested while bearing risks and losses have a legitimate share of corporate profits."
President Lee's point is valid in that the semiconductor performance of Samsung Electronics (005930.KS), which is expected to post operating profit of up to 300 trillion won this year, cannot be the exclusive preserve of any particular group. President Lee also criticized the union's excessive behavior, saying, "Excess is as bad as deficiency, and when things reach an extreme, they must turn back (物極必反)," adding, "Having more power does not mean having more or being happier." He further hinted at the possibility of invoking emergency arbitration powers, noting that "citizens' fundamental rights can be restricted for public welfare and other reasons."
The court ruled the same day that it was difficult to recognize the legitimacy of the semiconductor strike. The Suwon District Court granted most of Samsung Electronics' injunction request, filed last month against the union, to ban illegal industrial action. The court ordered the maintenance of essential personnel, stating, "Once semiconductor equipment is damaged, considerable time and cost are required to restart operations," and that "this constitutes significant damage that cannot be recovered through subsequent monetary compensation." While the National Labor Relations Commission's second post-dispute mediation is scheduled to continue through the 19th, the court's decision has put a partial brake on the general strike planned for the 21st.
The Samsung Electronics union insists on abolishing the "50% of annual salary" cap on performance bonuses and codifying a "15% of operating profit" payout. However, excessive performance bonuses risk undermining a company's competitiveness. Under such circumstances, the union must not turn a blind eye to the reality that the president has had to address management rights and even the court has had to point out the impropriety of the strike.
President Lee's remarks on "respecting corporate management rights" can be seen as emphasizing that sustainable economic growth is possible only when labor and management strike a balance. However, it is hard to deny that the union's resolution to strike on the back of unreasonable demands is rooted in the government's pro-union stance, including the Yellow Envelope Act. For "respect for management rights" not to remain an empty declaration, it must lead to legislation of effective management defense mechanisms such as poison pills and dual-class shares. The current Samsung Electronics situation clearly demonstrates that without legitimate safeguards for management rights, neither corporate growth nor national economic development can be guaranteed.
