President Lee: Profit Distribution Not a Labor Dispute

President Lee Jae-myung stated on July 21 that the issue of distributing a portion of operating profits to workers is unlikely to be classified as a labor dispute.

In response to claims by the Samsung Electronics union that the construction of a semiconductor plant at the Gwangju military airport site should be a subject of labor negotiations, he emphasized that the overall exercise of management rights cannot be a matter of dispute and directed the Ministry of Labor to establish clear criteria.

During a Cabinet meeting at the Blue House, President Lee addressed the recent controversy surrounding the scope of labor disputes. He stressed the need for the government to provide certain standards regarding labor disputes, stating, "It is the government's role to provide certain criteria regarding labor law. It is not necessary to legislate every issue; legislation serves as a comprehensive standard, while the executive branch is responsible for specifying it."

Minister of Employment and Labor Kim Young-hoon commented on the claims made by the Samsung Electronics mega union, stating, "We believe that the decision by Samsung Electronics to build a large-scale semiconductor plant in Gwangju does not fall under the category of a labor dispute. We have also issued a press release indicating that it contradicts the intent of the labor law amendment."

In response, President Lee noted, "There are management decisions related to personnel rights and working conditions, but the boundaries are unclear. The question of whether distributing a percentage of operating profits is a matter of dispute is being debated across various workplaces, and there are many that are considering whether to strike over this issue."

He further remarked, "There is also a government position on this matter, and it would be better to clearly establish guidelines in advance through enforcement decrees, presidential orders, enforcement rules, and labor ministry guidelines."

President Lee urged, "Before disputes arise and are judged by the Labor Commission and then go to court, please organize this through presidential orders, enforcement rules, guidelines, and notices if necessary. This will help reduce social disputes."

He added, "If we continue to expand this way, will there be an end? I ask that you quickly organize it within reasonable limits."

Regarding the military airport, he stated, "If a factory is built in Gwangju, there may be a possibility of relocation, which seems to be the basis for the claim that it is a subject of labor disputes. However, if we consider it that way, there cannot be any management rights exercise unrelated to all companies. Issues like inheritance or the sale of management rights could also be seen as potentially worsening working conditions, leading to endless disputes."