Business leaders have stated that demands for profit-linked bonuses cannot be considered a subject of labor disputes. This position comes in response to recent demands from major companies following Samsung Electronics and SK Hynix's decision to distribute a percentage of their operating profits as bonuses, which has led to increased turmoil in the industrial sector.
They also argued that the establishment of mega special zones, aimed at securing global competitiveness in national strategic industries such as semiconductors, AI robots, and autonomous vehicles, should include measures to enhance labor flexibility by relaxing regulations on working hours and employment.
On August 17, the Korea Employers Federation (KEF) expressed this stance in a statement regarding recent labor issues.
The KEF asserted that demands for profit-linked bonuses do not pertain to working conditions or business decisions affecting those conditions, and therefore should not be subject to collective bargaining. They noted that there are few examples in advanced countries like the U.S., Japan, and Europe where labor and management have agreed to fixed bonuses based on a certain percentage of operating profits.
Consequently, the Ministry of Employment and Labor should clarify through enforcement decrees and rules that profit-linked bonuses are not a subject of collective bargaining. The KEF warned that if such demands spread across industries, it could lead to reduced investment and research and development (R&D), exacerbating labor-management conflicts and undermining global competitiveness.
Regarding the government's promotion of the semiconductor mega project in the Honam region, the KEF stated that attempts by labor groups to make the establishment of semiconductor factories a subject of collective bargaining are inappropriate.
In fact, the Supreme Court has ruled that management decisions, such as corporate restructuring, are generally not subjects of collective bargaining. The Ministry of Employment also interprets that business decisions affecting working conditions are difficult to consider as subjects of collective bargaining.
A KEF official remarked, "Despite the Ministry's interpretive guidelines lacking legal binding force, conflicts in the industrial sector continue. It is essential to clarify through enforcement decrees and rules that high-level management decisions are not subjects of collective bargaining, and ultimately amend the definition of labor disputes in the Labor Union Act to prevent confusion."
The special law for mega special zones should also reflect measures to enhance labor flexibility, such as expanding the management units for overtime work, introducing a white-collar exemption system, expanding flexible and selective working hours, extending the usage period for fixed-term workers, and broadening the scope of dispatched work, according to the KEF's recommendations.
Lee Dong-geun, KEF's executive vice president, emphasized, "The competition for technological supremacy in the era of AI and semiconductor transformation ultimately hinges on how quickly and flexibly talent can be deployed. Profit distribution and high-level management decisions regarding factory establishment should not become sources of labor-management conflict, and labor flexibility must be supported for mega special zones to serve as a starting point for nurturing national strategic industries."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.