President Lee Warns Labor Dispute Scope Could Be "Endless" Over Gwangju Chip Plant

Scope of Labor Disputes "Seems Too Broadly Expanded," Lee Points Out Kim Young-hoon: "Building the Gwangju Plant Itself Is Not Subject to Disputes" President Lee: "Standards Needed on Whether Performance Bonuses Are Subject to Disputes"

Politics|
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By Song Jong-ho
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President Lee Jae-myung speaks at the 31st Cabinet meeting held at Cheong Wa Dae on the 21st. Cheong Wa Dae Press Corps - Seoul Economic Daily Politics News from South Korea
President Lee Jae-myung speaks at the 31st Cabinet meeting held at Cheong Wa Dae on the 21st. Cheong Wa Dae Press Corps

President Lee Jae-myung on the 21st stressed that "in the end, certain standards will need to be set" regarding the scope of labor disputes expanded under the enactment of the Trade Union and Labor Relations Adjustment Act, known as the "Yellow Envelope Act." He also expressed concern over the pushback from Samsung Electronics' pan-company union, which argues that the construction of a semiconductor plant in Gwangju could be made subject to labor disputes, saying, "If done this way, there is no end to it."

At a Cabinet meeting held at the Blue House that day, President Lee referred to the recent demands from the Samsung Electronics labor union and pointed out, "Now that they say a semiconductor plant will be built at the Gwangju Military Airport, the union is claiming it is a matter subject to labor-management negotiations, and in effect saying that without agreement they cannot proceed. Such incomprehensible arguments are being made, and the public is shocked." He added, "The argument seems to be that if a plant is built in Gwangju, since I might be transferred, it becomes subject to labor disputes." He continued, "By that logic, there is nothing among all companies' exercise of management rights that is unrelated. For example, inheritance issues and the sale of management rights would also become problems. If done this way, there is no end to it."

Minister of Employment and Labor Kim Young-hoon also explained the interpretation guidelines for the Yellow Envelope Act, saying, "It is judged that making Samsung Electronics' management decision itself to build a large-scale semiconductor plant in Gwangju subject to labor disputes does not apply."

In response, President Lee said, "(The scope of labor disputes) seems to be expanding too broadly," and instructed on the need to establish clear government-level standards to reduce confusion. President Lee also addressed the matter of distributing a certain portion of operating profit as performance bonuses, saying, "Is it really subject to disputes? In my case, I think it is not. That is just my personal opinion." He nevertheless pointed out, "Is this subject to disputes? Whether something that even shareholders cannot do can be done is becoming a point of contention." He continued, "There can be management decisions related to working conditions, but the boundaries are somewhat ambiguous," stressing that "it is also the government's role to present certain standards."

In particular, President Lee said, "Providing certain standards regarding labor law is also the government's role," adding, "It was set by legislation, but legislation cannot determine every single matter, can it? It is a certain comprehensive standard, and making that standard a bit more specific is the responsibility of the executive branch that enforces the law."

He then stressed, "Right now, each ministry thinks that if the National Assembly does not act, the standards cannot be set," and emphasized, "The primary standard is set by legislation, but concretizing that legislative standard is the executive branch's share." He added, "It is the executive branch's role to establish specific standards through enforcement ordinances, enforcement rules, ministerial ordinances, and guidelines within the scope set by law."

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Original reporting by Song Jong-ho for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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