Kim Young-hoon, the Minister of Employment and Labor, stated that the recent strike by the Samsung Electronics labor union, which demands a bonus based on a percentage of operating profit, would be considered illegal under the newly announced labor dispute guidelines. However, he noted that since Samsung and its labor union have already established a method for bonus payments, the new guidelines will not be applied retroactively.
During an interview on SBS Radio's 'Kim Tae-hyun's Political Show' on September 8, Minister Kim responded affirmatively when asked if the union's strike would be illegal under the new guidelines, saying, "Yes," and added, "I think it is difficult to start by deducting N% from operating profit."
The Ministry of Employment and Labor specified in the implementation guidelines released on September 3 that demands for performance bonuses linked to corporate profits are not considered mandatory negotiation subjects. This is due to concerns that such demands could infringe on the rights of third parties, such as the state and shareholders, and excessively restrict corporate management decisions and execution.
Minister Kim clarified that not all performance bonus demands are excluded from disputes. He expressed concern about whether it is appropriate to deduct bonuses before paying taxes when a company generates operating profit, stating, "There was a question about whether it is right to take out performance bonuses first before paying taxes on operating profit."
He also pointed out that demanding a percentage of operating profit as a bonus could lead to misunderstandings among foreign investors, potentially resulting in reduced investment and weakened corporate competitiveness.
However, the new guidelines will not be applied retroactively to past labor relations, as Samsung Electronics and its labor union have already established a method for bonus payments through collective agreements.
Minister Kim emphasized, "The law is difficult to judge in black and white, and precedents need to be accumulated. What we lack is not the system, but trust."
He expressed caution regarding the introduction of a 'white-collar exemption' in the special law for mega-special zones being promoted by the government and ruling party. The white-collar exemption would exclude high-income professionals from labor hour regulations.
Minister Kim stated, "It is correct to row the boat when the tide comes in, but unlimited exemptions need to be viewed differently," adding that a solution must be found to ensure flexibility while protecting workers' health.
Regarding the exclusion of unemployment benefits for voluntarily resigning individuals under 35 from next year's budget, he explained that the decision was made due to concerns about potential negative effects. He noted, "Many young people leave their jobs voluntarily in form but involuntarily in substance due to difficulties in adapting early in their careers, so the intention was to give them another chance. However, due to some criticism, it was not included in next year's budget."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.