[fn Editorial] Excessive Wage Demands and General Strike Ignoring Economic Crisis

The National Democratic Labor Union Federation (Minnocho) went on a general strike on the 16th. On the weekend of the 19th, they plan to rally nationwide forces for a 'General Struggle March' at Gwanghwamun Sejong-daero in Seoul.

The first demand of Minnocho is for the new government to abolish the labor policies of the Yoon Seok-yeol government. Only then will they engage in substantial dialogue and negotiations with the government. They also demanded the immediate amendment of Labor Law Articles 2 and 3 (Yellow Envelope Act) and the guarantee of basic rights for special employment and platform workers.

Not only is Minnocho leading the general strike, but industrial unions such as the Service Federation, Metal Union, and Construction Industry Federation are also separately announcing strikes. The labor sector's 'Summer Struggle' is unfolding this year as well.

It cannot be unconditionally criticized for unions to engage in legal disputes for the benefit of their members. However, the timing and purpose must align with public expectations to gain persuasion and support.

Despite the progressive new government pursuing pro-labor policies, Minnocho's general strike seems intended to seize the initiative in labor-government relations. It appears to be an attempt to prevent the new government from even attempting reforms by criticizing the failed labor reforms of the previous administration.

The domestic economy is further troubled by prolonged sluggish domestic demand and export declines due to U.S. tariff pressures. With the economic growth rate expected to fall to 1%, companies are projected to suffer more in the second half of the year. Companies must survive first to raise wages and improve welfare levels.

As some complete car company unions, including the Hyundai Motor Union under the Metal Union, join this general strike, there are concerns about production disruptions. Complete car companies are negotiating wage and collective agreements separately by union, but the demands are excessive. The Hyundai Motor Union is demanding a basic monthly salary increase of 141,300 won (26% compared to the previous year), a retirement age guarantee of 64, and a 30% profit bonus payment. The Kia Motor Union's demands are the same, with the bonus demand amounting to 4 trillion won.

Although automobile exports are relatively better, the company explains that if the U.S. imposes a 25% tariff and additional mutual tariffs in August, the entire company will experience negative growth due to losses amounting to trillions of won. No company can withstand the excessive and constant demands of the 'aristocratic union' with an average annual salary exceeding 100 million won. Hyundai Steel, unable to endure the excessive demands despite the worsening conditions in the steel industry, is responding with shutdowns, restructuring, and building a factory in the U.S.

The Democratic Party is collecting opinions from the government, economic circles, and labor circles regarding the Yellow Envelope Act. Minnocho should trust and wait for the government and the Democratic Party, which are implementing union-friendly policies. Repeating 'first struggle, then negotiation' can drive the economy to the brink of collapse. A strike is not a tool for negotiation but a last resort of pressure.

Recently, the labor-management public-private agreement resolved next year's minimum wage through a tripartite agreement of workers, employers, and public interest members. The labor and management, who fought even risking physical fights, reached an agreement for the first time in 17 years since 2008, showing the possibility of cooperation. Both labor and management reportedly agreed on the grim economic outlook.

In difficult economic times, unions should also know how to yield. The virtues of agreement and cooperation must take root. It is time for labor and management to overcome the economic crisis together with mutual trust and the spirit of grand compromise, avoiding political and illegal strikes.