As Prime Minister Kim Min-seok officially raised the possibility of invoking emergency adjustment powers in connection with the Samsung Electronics strike, the four instances of its use since the system was introduced have drawn attention. In the past, emergency adjustment powers concluded with labor-management agreements or mediation by the Central Labor Relations Commission.
That day, Prime Minister Kim Min-seok, referring to the Samsung Electronics strike, said, "If a situation arises in which significant harm to the national economy is feared, the government cannot help but seek all possible response measures, including emergency adjustment, to protect the national economy." He officially mentioned the possibility of invoking emergency adjustment powers.
According to Article 76 of the Trade Union and Labor Relations Adjustment Act, emergency adjustment powers may be invoked by a decision of the Minister of Labor when a dispute concerns public utilities, or when its scale is large or its nature is special, and a present danger exists that would significantly harm the national economy or endanger people's daily lives. When invoked, dispute activities must cease immediately, and workers at the enterprise must return to the workplace. Strikes are banned for 30 days.
Labor and management enter the adjustment process, and the Central Labor Relations Commission conducts mediation. For private corporations, an adjustment committee composed of one Commissioner each from labor, management, and the public interest handles the adjustment. If it is determined that there is no prospect of reaching an adjustment, a decision on whether to mediate is made within 15 days of the start of adjustment after hearing the opinion of the public-interest Commissioner. An arbitral award carries the same effect as a collective agreement and is binding.
Since the system was introduced in 1963, emergency adjustment powers have been used only sparingly. Interpretations differ on when invocation is possible. Based on the phrase "when a present danger exists," specified as a requirement for invocation, some view that it can be used after a strike has begun, while others see that it can be invoked even before a strike if danger is anticipated. The Ministry of Employment and Labor (MOEL) views invocation as possible after a strike has begun.
The first case was triggered in 1969 during a Daehan Shipbuilding strike, citing export disruptions and harm to the national economy. At the time, labor and management reached an agreement through negotiations without mediation by the Central Labor Relations Commission. In 1993, emergency adjustment powers were also invoked during a strike by the Hyundai Group Federation of Labor Unions. Likewise, within a day of invocation, labor and management agreed on wages and collective bargaining, ending the strike.
In 2005, emergency adjustment powers were invoked twice during strikes in the aviation industry, but no agreement was reached. After about 323.3 billion won in losses followed the Asiana Airlines strike, the government invoked emergency adjustment powers and entered adjustment, but talks broke down, and an arbitral award was issued after about a month. The same year, emergency adjustment powers were invoked for a Korean Air Lines strike and adjustment began, but after talks collapsed, compulsory arbitration was imposed on Jan. 10 of the following year.
In 2016, invocation was forewarned during a Hyundai Motor strike phase, but a dramatic labor-management agreement meant it did not proceed to actual implementation. If invocation is declared for the current Samsung Electronics union strike, it would be the first case in 21 years since 2005.
Some analysts also say a backlash from labor could spread if it is invoked. That is because the invocation of emergency adjustment powers could conflict with the three labor rights guaranteed by the Constitution. When invoked, a strike is forcibly terminated, restricting the right to collective action. The International Labor Organization (ILO) has also recommended abolishing the emergency adjustment system.