The National Labor Relations Commission (NLRC) officially announced on the morning of the 20th that the second post-mediation between labor and management at Samsung Electronics had broken down, ending the marathon negotiations that continued for three days from the 18th without results. With just hours left before June 21, the day a general strike has been announced, negotiation channels have closed, making the question of whether the government will invoke its emergency adjustment authority the biggest variable.
Because President Lee Jae-myung and the government hold the position that a strike must be prevented, sentiment is leaning toward a higher likelihood of invoking the emergency adjustment authority after a strike begins. However, experts agree that even if the authority is invoked, it would only forcibly halt the strike for 30 days and is not a means to resolve the fundamental differences between labor and management. That is why the prevailing outlook is that a stalemate will be inevitable even after the cooling-off period.
◇ Largest strike since founding becomes reality, union says "no compromise"
With the strike entering the final countdown due to the sharp differences between the two sides, the government is increasingly likely to invoke the emergency adjustment authority out of concern for the potential impact on the national economy. After the talks collapsed, the emergency adjustment authority is virtually the only card the government can play. Prime Minister Kim Min-seok said in a national address on the 17th, "To protect the national economy, we cannot help but consider all possible response measures, including the emergency adjustment authority."
Even before the final bargaining table between labor and management at Samsung Electronics began, the government preemptively revealed the emergency adjustment card. Looking at the four past cases of invoking the authority, it took as long as 78 days and at least four days after a strike began. This time is seen as unusual because the president, the political establishment, and even the courts are signaling a brake before production disruptions occur.
The legal community says there is no disagreement that the requirements are met. A legal source said, "Considering the weight semiconductors hold in our industry, and especially the risks to the stock market, it is reasonable to see that the requirements for invoking the emergency adjustment authority are to some extent satisfied." The legal basis for the authority is Article 76 of the Trade Union and Labor Relations Adjustment Act. It can be invoked when a labor dispute concerns public utilities, or when its scale is large or its nature is special, such that there is a present danger of significantly harming the national economy or endangering the daily lives of the public. The Minister of Employment and Labor (MOEL) makes the decision after hearing the opinion of the Chairperson of the National Labor Relations Commission and obtaining the president's approval.
The union, however, remains hard-line despite such pressure. Chairperson Choi Seung-ho said, "They are hinting at invoking the emergency adjustment authority to pressure the union, but we will never yield," and it was also reported that when management mentioned the authority during the talks, the union walked out. If the union defies the invocation and continues the strike, it would be subject to criminal penalties, meaning legal conflict cannot be ruled out.
◇ If the emergency adjustment authority is invoked, a 30-day cooling-off period begins and talks resume
If the emergency adjustment authority is invoked, a "30-day cooling-off period" begins. Article 77 of the Trade Union and Labor Relations Adjustment Act states, "When the decision on emergency adjustment is announced, the parties concerned shall immediately stop any industrial action, and industrial action cannot be resumed until 30 days have passed from the date of the announcement."
Simply put, when labor-management conflict escalates to the extreme, the state forcibly intervenes and orders, "Do not fight for 30 days." During this period, the union cannot engage in any industrial action, including strikes, slowdowns, or collective use of paid leave, and violations are subject to criminal penalties. Instead, labor and management must return to the bargaining table under the mediation of the National Labor Relations Commission. However, what is compelled is mediation, not agreement. If there is no agreement after 30 days, the union regains the legal right to strike.
Past cases bear this out. During the 2005 Korean Air Lines pilots' strike, the government invoked the authority on the fourth day of the strike, and the NLRC subsequently decided on mediation centered on a 2.5% increase in base pay, bringing the situation to a close. But the Samsung Electronics situation is different. This dispute has already laid bare conflict over performance bonuses and internal division, and even if the strike stops, it is not an issue that can be defused in a short time. Labor circles and experts commonly view the likelihood of resolving the fundamental conflict—restructuring the performance bonus system—within the 30-day cooling-off period as low.
If no settlement is reached even after 30 days, the union regains the legal right to strike, raising the possibility that the labor-management conflict structure could drag on. A business community source said, "For Samsung to overcome this strike crisis, a decision by management is necessary, but if it accepts the union's demands as is, it will face not only medium- to long-term risks but also the worst precedent, so that will not be easy either."