President Lee Jae-myung on Wednesday took aim at the Samsung Electronics (005930.KS) labor union, which had announced plans to strike, saying, "Sharing a fixed proportion of operating profit institutionally, even before deducting taxes that could be considered the public's common share, is something not even investors can do." Lee added, "Even investors receive dividends from net profit after taxes are deducted. I find it somewhat hard to understand."
The union has demanded the abolition of the bonus cap, currently set at 50 percent of annual salary, along with institutionalizing the payment of 15 percent of operating profit as a bonus pool. Despite three rounds of post-mediation, Samsung Electronics' management and union each issued statements that day saying the second post-mediation had ended without final agreement.
At a Cabinet meeting and emergency economic review session held at the Blue House the same day, Lee said, "To accommodate the socially vulnerable, certain special protections are sometimes provided," citing the rights to collective action, labor association, and collective bargaining as representative examples. "Should these not be abused or misused in ways that cross reasonable lines and inflict serious suffering on others?" Lee said. "Likewise, the three labor rights are also intended to protect workers, who are socially vulnerable." He continued, "Important principles of solidarity and responsibility are at work," adding, "These rights were not granted as force to collectively push through something solely for the benefit of individuals or a few people."
Lee also defined them as "constitutional devices to maintain proper social balance and to provide a balance of power to the weak." He went on to emphasize, "Various stakeholders are involved in a company. There are investors who have borne the risks and losses. Because they have borne losses and risks, they naturally have the right to share in the profits." He continued, "While fair compensation must be guaranteed for labor, receiving a share of operating profit is what investors do." Lee said, "Isn't this something everyone should think about? Ultimately, the final responsibility for all this mediation lies with the government."
Lee said, "For a social community to function properly, reasonable lines must be observed," adding, "It is about enabling members of society to freely exercise their rights and expression while properly observing reasonable lines." He continued, "(Our society) is becoming significantly polarized, with little middle ground. Many cross the line. It may be helpful or beneficial in the short term, but in the long run, that will certainly not be the case."
Lee added, "While pursuing one's personal interests is important, I think it is also necessary to reflect on the sense of solidarity and responsibility that exists behind it. Rights always come with duties, and authority always comes with responsibility."
Meanwhile, Kang Yu-jung, senior presidential spokesperson, said in a press notice that day, "We deeply regret that the National Labor Relations Commission's post-mediation has broken down," adding, "Even before the final deadline, we hope both labor and management will do their utmost to reach an agreement until the end, considering the concerns this could pose to the Korean economy."
