As Prime Minister Kim Min-seok officially raised the possibility of invoking emergency adjustment powers in connection with the Samsung Electronics strike, the four prior cases since the system was introduced have drawn attention. In the past, emergency adjustment was concluded through labor-management agreements or arbitration by the Central Labor Relations Commission.
On this day, Prime Minister Kim Min-seok said of the Samsung Electronics strike, "If a situation arises in which enormous damage to the national economy is feared, the government cannot help but seek every possible response measure, including emergency adjustment, to protect the national economy." He officially mentioned the possibility of invoking emergency adjustment powers.
Under Article 76 of the Trade Union and Labor Relations Adjustment Act, emergency adjustment may be invoked by a decision of the Minister of Labor when a labor dispute concerns public utilities, or is large in scale, or is of a special nature such that there is a present risk of seriously harming the national economy or endangering the daily lives of the public. Once invoked, the labor dispute must cease immediately, and workers at the enterprise must return to the workplace. Strikes are banned for 30 days.
Labor and management enter adjustment procedures, and the Central Labor Relations Commission proceeds with arbitration procedures. For private corporations, an adjustment committee consisting of one Commissioner each from labor, management, and the public interest conducts the adjustment. If it is determined that there is no prospect of reaching an adjustment, a decision on whether to arbitrate is made within 15 days of initiating adjustment after hearing the opinion of the public-interest Commissioner. An arbitration award has 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. Some say it can be used only after a strike begins, based on the wording "when the risk is present" specified in the invocation requirements, while others contend it can be invoked before a strike when risk is anticipated. The Ministry of Employment and Labor (MOEL) views invocation as possible after a strike has begun.
The first case was in 1969 during a Daehan Shipbuilding strike and was invoked due to disruptions to exports and damage to the national economy. At the time, labor and management reached an agreement through negotiations without arbitration by the Central Labor Relations Commission. In 1993, emergency adjustment was invoked during a strike by the Hyundai Group Federation of Unions. Again, within a day of invocation, labor and management agreed on wage and collective bargaining, ending the strike.
During the 2005 aviation industry strikes, emergency adjustment was invoked twice, but no agreements were reached. After the Asiana Airlines strike caused about 323.3 billion won in damage, the government invoked emergency adjustment and moved to mediate, but talks broke down, and about a month later an arbitration award was issued. The same year, emergency adjustment was invoked in the Korean Air Lines strike and mediation began, but after talks collapsed, compulsory arbitration was imposed on Jan. 10 of the following year.
In 2016, invocation was signaled during a Hyundai Motor strike phase, but a dramatic agreement between labor and management prevented actual implementation. If emergency adjustment is declared over the current Samsung Electronics union strike, it would be the first case in 21 years since 2005.
Some analysts say an invocation would likely fuel backlash from organized labor. That is because emergency adjustment could conflict with the three labor rights guaranteed by the Constitution. Once invoked, the strike is forcibly terminated, restricting the right to collective action. The International Labor Organization (ILO) has also recommended abolishing the emergency adjustment system.