Prime Minister Kim Min-seok on the 17th delivered a national address regarding the Samsung Electronics strike. Kim said, "If the Samsung Electronics strike is feared to inflict massive damage on the national economy, the government will consider every possible response measure, including an emergency adjustment." This is the first time the government has mentioned emergency adjustment authority in an official setting.
The emergency adjustment Kim mentioned refers to the "emergency adjustment authority" under Article 76 of the Trade Union and Labor Relations Adjustment Act. The Minister of the Ministry of Employment and Labor (MOEL) may invoke the emergency adjustment authority when a labor dispute is likely to significantly harm the national economy or endanger people's daily lives.
Once the emergency adjustment authority is invoked, the union must immediately stop industrial action, and strikes are banned for 30 days. If strike activities continue during this period, they may be investigated on suspicion of interfering with business. For 30 days, labor and management must resume negotiations, and if they fail to reach an agreement, the chair of the Central Labor Relations Commission will decide ex officio to refer the case to arbitration.
The emergency adjustment authority has been invoked four times so far: the 1969 Daehan Shipbuilding strike, the 1993 Hyundai Motor strike, and the July and December 2005 strikes by pilots at Asiana Airlines and Korean Air Lines. Analysts say the ripple effects of a general strike at Samsung Electronics on Korea's economy would be far greater than in those past instances.
◇ Kim: "The achievements of Samsung Electronics are the achievements of every member of the public"
Kim delivered a national address of about 10 manuscript pages in 200-character grid format at the Seoul Government Complex that day. Minister Kim Young-hoon of the Ministry of Employment and Labor (MOEL) and Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources also attended the announcement.
Kim said, "The talks between labor and management at Samsung Electronics on the 18th are effectively the last chance to prevent a strike." He added, "Together with the entire public, we earnestly ask labor and management to produce results at tomorrow's post-mediation, which is effectively the last chance." He went on, "If a situation arises in which a strike is feared to inflict massive damage on the national economy, the government cannot help but take every possible response measure, including emergency adjustment, to protect the national economy."
Kim said, "Samsung Electronics accounts for 22.8% of South Korea's exports and 26% of total market capitalization, employs more than 120,000 people, making it the nation's largest employer, and serves as a core pillar of our economy together with some 1,700 partner companies," adding, "Losses from a Samsung Electronics strike would impose a heavy burden and shock on South Korea's economy."
He continued, "A strike occurring at this critical juncture, when we have just entered a full-fledged growth phase and must lead a rebound in the national economy, is an act of undermining the trust and foundations of the entire semiconductor industry," adding, "While we stand still due to internal conflict, overseas competitors will use that gap to secure customers and markets and expand their global leadership."
Kim said, "We ask the Samsung Electronics union to seek common ground through dialogue and compromise rather than insisting on a strike." To management, he said, "Approach the talks with a responsible attitude, listen to the union's voice, and do your utmost to devise solutions for labor-management co-prosperity."
He added, "The achievements Samsung Electronics has made as it grew into a global corporations were possible thanks to the efforts and dedication of both labor and management, and they are the achievements of every member of South Korea," and "In addition, there was exceptional support from central and local governments, including the creation of industrial complexes and tax benefits, and amid global trade conflicts, the public has given unwavering trust and support to uphold the status of a semiconductor powerhouse."
Meanwhile, the Samsung Electronics union said it will go on a general strike from the 21st to the 7th of next month unless 15% of operating profit is allocated for bonuses and the cap on bonuses is removed. This year, operating profit at the Samsung Electronics semiconductor (DS) institutional sector is expected to be 300 trillion won, and the demand is to allocate 45 trillion won for bonuses.
Earlier, labor and management at Samsung Electronics held post-mediation, a mediation procedure of the Central Labor Relations Commission of the Ministry of Employment and Labor (MOEL), from the 11th to the 13th, but talks collapsed. The previous day, Samsung Electronics Chairman Lee Jae-yong returned to Korea from an overseas business trip and delivered a public apology. Lee said, "I will face the biting wind and rain and take all the blame." After Lee's apology, labor and management agreed to begin a second round of post-mediation on the 18th.