Prime Minister Kim Min-seok on the 17th delivered a public address regarding the Samsung Electronics strike. Kim said, "If there is concern that the Samsung Electronics strike will inflict enormous damage on the national economy, the government will consider every possible response measure, including an emergency adjustment." The emergency adjustment Kim mentioned refers to the "emergency adjustment authority" based on Article 76 of the Trade Union and Labor Relations Adjustment Act. This is the first time the government has mentioned the emergency adjustment authority in an official setting.
According to 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 strike action 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 halt industrial action, and strikes are banned for 30 days. If strike actions continue during this period, parties may be investigated on suspicion of violating the law. 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, ex officio, refer the case to arbitration. Once an arbitration proposal is issued, labor and management must comply.
The emergency adjustment authority has been invoked four times so far: the 1969 Daehan Shipbuilding strike, the 1993 Hyundai Motor strike, and the pilots' strikes at Asiana Airlines and Korean Air Lines in July and December 2005. Analysts say the ripple effects of a general strike at Samsung Electronics on Korea's economy would be far greater than in those cases.
◇ Kim: "Samsung Electronics' achievements are the achievements of all members of the nation"
Kim delivered a public address of about 10 manuscript pages in 200-character format on the day at the Government Complex Seoul. 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 address.
Kim said, "The labor-management talks at Samsung Electronics on the 18th are effectively the last chance to prevent a strike." He added, "At tomorrow's post-adjustment, I earnestly ask, together with the entire nation, that labor and management produce results." He went on, "If a situation arises in which a strike is feared to inflict enormous damage on the national economy, the government cannot help but consider every possible response measure, including emergency adjustment, to protect the national economy."
Kim said, "Samsung Electronics accounts for 22.8% of Korea's exports and 26% of total market capitalization, and with more than 120,000 employees, it is the country's largest employer and a key 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 Korea's economy."
He continued, "At a critical juncture when we have just entered a full-fledged growth phase and must lead a rebound in the national economy, a strike would be an act of undermining the trust and foundation of the entire semiconductor industry," adding, "While we stand still due to internal conflict, overseas competitors will use the opening to secure customers and markets and expand their global leadership."
Kim said, "Rather than insisting on a strike, the Samsung Electronics union should make efforts to find common ground through dialogue and compromise." Addressing management, he said, "Engage in negotiations with a responsible attitude, listen to the union's voice, and make every effort to prepare a win-win solution for labor and management."
He added, "The achievements Samsung Electronics has made as it grew into a global company were possible thanks to the efforts and dedication of both labor and management, and they are the achievements of all members of the Republic of Korea," and "In addition, there was extraordinary support from the central and local governments, such as the creation of industrial complexes and tax benefits, and amid global trade conflicts, the public gave unwavering trust and support to safeguard the status of a semiconductor powerhouse."
Meanwhile, the Samsung Electronics union said it will hold a general strike from the 21st to July 7 unless 15% of operating profit is set aside for bonuses and the cap on bonuses is removed. This year, operating profit in the Samsung Electronics semiconductor (DS) institutional sector is expected to be 300 trillion won, and the union is asking for 45 trillion won in bonuses.
Earlier, labor and management at Samsung Electronics went through post-adjustment, the 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, Chair Lee Jae-yong of Samsung Electronics returned from an overseas business trip and issued a public apology. Lee said, "I will face the fierce wind and rain myself and take all the blame." After Lee's apology, labor and management agreed to enter a second post-adjustment from the 18th.