The Blue House: Government Will Actively Support Reasonable Adjustments as Samsung's Tentative Agreement Affects Industry

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\r\n[Financial News] The Blue House said on the 21st that Samsung Electronics' tentative wage agreement could affect labor and management negotiations across the industrial sector. It added, "The government will actively support efforts to ensure that labor and management negotiations are adjusted in a reasonable direction."
In a briefing on current issues at the Chunchugwan Press Center that day, Chief spokesperson Kang Yoo-jung said, "The impact of this conflict on the national economy is enormous."
Kang also said, "In principle, labor and management issues are matters that the two sides decide autonomously." She added, "However, this recent dispute over Samsung's management performance bonuses has gone far beyond a labor-management issue and has become a major social controversy. Many people have witnessed how intense the conflict became as this social issue was addressed."
Regarding Samsung Electronics labor and management narrowly reaching a tentative wage agreement and avoiding a general strike, Kang said, "Although the post-mediation process at the Central Labor Commission broke down, everyone in the country was worried. So I understand that Samsung Electronics and labor and management each made a concession, leading to the tentative agreement." She added, "I see this as the result of efforts by both labor and management, as well as active cooperation from the government side, including the Minister of Employment and Labor."
Asked about President Lee's remarks the previous day at the State Council of South Korea and the Emergency Economic Review Meeting, where he criticized the Samsung Electronics labor union by saying, "Before taxes, which can be seen as the common share of the people, a certain percentage of operating profit is being systematically divided up. Even investors cannot do that." He also said, "Investors, too, receive dividends from net income after taxes, and I find that somewhat difficult to understand." Kang replied, "The president did make a point of clearly distinguishing between net income and operating profit. I understand that he meant this issue needs to be reviewed and discussed further at the social level."
She also commented on the Samsung Electronics minority shareholder group, which said it would pursue legal action, including an injunction, over the tentative wage agreement and claimed it was unlawful. Kang explained, "As for the injunction request and related matters, we will need to look into them further for now."
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cjk@fnnews.com Choi Jong-geun Reporter