Estimated losses of up to 100 trillion won... Conditions met for emergency arbitration order, one-month strike ban and government mediation [Samsung Electronics strike at a crossroads]

The Emergency arbitration order, which has been mentioned as a possible response to Samsung Electronics labor union's general strike, is the strongest intervention measure. It bans strikes for 30 days and effectively pushes labor and management toward an agreement through government mediation. So far, it has been invoked only four times. In the past, it was usually issued after strikes had continued for several days, on the grounds that they were causing losses to the national economy. If a mediation proposal or arbitration decision is finalized after the emergency arbitration process, the union will find it difficult to resume a strike over the same issue within this year. If it still goes on strike for the same reason after the order, the action is likely to be judged illegal.
The following are the key issues related to the emergency arbitration order, presented in a Q&A format.
— Does Samsung Electronics' general strike meet the conditions for an Emergency arbitration order?
▲ The order may be issued when a labor dispute involves a public utility, is large in scale, is of a special nature that significantly harms the national economy, or poses an imminent risk to the public's daily life. The Minister of Employment and Labor can decide on emergency arbitration if such conditions are deemed to exist. In the case of a Samsung Electronics strike, an emergency arbitration order is being discussed because of its large scale and its potentially significant impact on the national economy. Inside and outside Samsung Electronics, estimates have also emerged that a strike could cause losses of up to 100 trillion won. During the 2005 strike by the Asiana Airlines and Korean Air pilots' unions, the government also cited the possibility of losses worth hundreds of billions of won as a reason for invoking emergency arbitration.
— Is the strike immediately banned, and what happens after emergency arbitration is triggered?
▲ The Minister of Employment and Labor can invoke the order after first hearing the opinion of the chairperson of the National Labor Relations Commission. Labor disputes such as strikes are legally banned for 30 days from the day the emergency arbitration is announced. At the same time, the minister notifies the National Labor Relations Commission and the labor and management parties of the decision, and the formal emergency arbitration process begins. Mediation can be carried out for up to 15 days from the date of notification. If the chairperson of the Central Labor Commission determines that a settlement is unlikely within that period, a decision is made on whether to refer the case to arbitration. If it is referred to arbitration, public-interest members draw up an arbitration proposal, and labor and management must follow it. The proposal has the same effect as a collective bargaining agreement. In practice, this means the year's collective bargaining agreement is effectively settled around the government's arbitration proposal.
— What are the past cases of emergency arbitration?
▲ So far, the government has invoked the Emergency arbitration order only four times: in 1969 at Korea Shipbuilding Corporation, in 1993 at Hyundai Motor Company, and in 2005 during the strikes by the Asiana Airlines and Korean Air pilots' unions. However, the government has generally intervened only after strikes had continued for several days, rather than immediately after they began. Among the four cases, the longest dispute was the Hyundai Motor Company Labor Union strike, which lasted more than 40 days. In none of these cases did the process proceed to government arbitration; all were settled through autonomous negotiations and mediation during the mediation period.
jhyuk@fnnews.com Kim Jun-hyuk Reporter