President Lee Jae-myung on the 21st addressed the labor unions' move to demand "distribution of N% of operating profit," saying, "Is this really subject to dispute? The side that says no is stronger." He said allocating a set percentage of operating profit is something even shareholders cannot unilaterally decide, so it cannot be seen as a subject of a labor dispute. Regarding the Samsung Electronics union's statement that it would take up the issue of creating a "Honam semiconductor cluster" as a collective bargaining agenda item, he said it was "an absurd claim."

President Lee Jae-myung speaks during a Cabinet meeting at the Blue House on the 21st. /Courtesy of News1

At a Cabinet meeting on the morning of the same day, Lee said of the Samsung Electronics union's claim to treat as a "dispute" the government and corporations' plan to build a semiconductor fab on the Gwangju military airport site, "It seems the scope (of labor disputes) is being expanded far too broadly," adding, "If we do it this way, there is no end. In the end, we need to set certain standards." He meant that as the scope of disputes expanded under the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers (Trade Union and Labor Relations Adjustment Act), some unions are making unreasonable demands.

Earlier, the Samsung Electronics branch of the Samsung Group supra-enterprise labor union, the largest union at Samsung Electronics, issued a statement on the 13th saying, "The Honam semiconductor megaproject is a project that could affect the workplaces and treatment of tens of thousands of people," and, "We will address related matters in the 2027 bargaining." It said that, under the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, which the government and ruling party enacted, the semiconductor cluster construction project has become a business decision affecting union members' working conditions and thus a subject of bargaining.

Regarding this, Lee said, "Extreme remarks that would be incomprehensible, to the effect that nothing can proceed without consent, are coming out and surprising the public," adding, "If you take it that way, there is nothing unrelated to the exercise of management rights at any company. For example, even inheritance issues or the sale of management control would become problems, wouldn't they?" He also said, "If you make such absurd claims and expand things like this, there is no end."

The government's position is that the semiconductor cluster, as a "management decision," is not subject to dispute. Kim Young-hoon, Minister of Employment and Labor (MOEL), explaining the interpretive guidance on the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, said, "We judge that the management decision itself by Samsung Electronics to build a large-scale semiconductor plant in Gwangju does not fall within the scope of a dispute."

The issue of "distributing performance bonuses from operating profit" was also raised. Lee, prefacing his remarks as a personal view, said, "In my case, I think this is not subject to a dispute," adding, "How could this be a subject of dispute? The point of contention is whether something that even shareholders cannot do can be done or not." He then said, "There can be management decisions related to working conditions, but the limits are ambiguous," and instructed the Minister to clearly set out guidance or a notice under the enforcement rules.

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