Labor Minister Says Samsung Bonus Dispute Was Not Caused by Yellow Envelope Law, as SK hynix Institutionalized Similar System Five Years Ago

[Financial News] Kim Young-hoon, Minister of Employment and Labor, pushed back point by point against claims that the Yellow Envelope Law, or the revised labor union law, triggered the recent bonus dispute at Samsung Electronics and the threat of a general strike. He said, "It is difficult to agree that the Yellow Envelope Law should be revised again as a countermeasure."
The key issue in the recent controversy is whether performance pay can be subject to a strike and whether it qualifies as wages. Kim cited a similar labor-management agreement reached in 2021 by SK hynix, Samsung Electronics' rival, as evidence against claims that the Yellow Envelope Law sparked the dispute. On whether performance pay should be treated as wages, he said the answer may vary depending on its form and nature, and added that Supreme Court precedents should be consulted.
He also dismissed claims that the Yellow Envelope Law gives a free pass to illegal strikes, saying, "The industry-wide labor union has never said it would stage an illegal strike."
At the press briefing held on the 27th at Government Complex Sejong, Kim said, "The Yellow Envelope Law is not about a regular-worker-centered, exclusive labor movement focused on protecting narrow interests. At a minimum, it opens the door to negotiations in which prime contractors and subcontractors within a company can survive together."
Some observers have pointed to the Yellow Envelope Law as a major reason the Samsung Electronics industry-wide labor union could make disputed performance pay a strike demand, even though its wage status remains unclear. Under traditional labor practices, disputes have centered on basic working conditions such as base pay, working hours, industrial safety, and employment stability. Critics argue that after the law was revised, even management decisions could become subjects of labor disputes, creating the backdrop for the bonus conflict.
In response, Kim asked, "Wasn't the reason this negotiation was so difficult that SK hynix institutionalized 10% of operating profit through a labor-management agreement in 2021, and Samsung Electronics workers kept saying, 'If SK can do it, why can't we?'"
The case Kim referred to is the 2021 labor-management agreement at SK hynix, which fixed the pool for Profit Sharing (PS) at 10% of operating profit. Last year, the company and its union also agreed to abolish the PS cap, leading to bonus payments worth hundreds of millions of won.
When asked whether performance pay should be considered wages, Kim replied, "Since opinions are divided, we ultimately have to look at Supreme Court precedents." Existing court rulings have judged wage status based on whether the payment is compensation for work and whether it is regular and uniform.
Kim said, "Some performance pay may qualify as wages, while some may not," adding, "How could I say anything that goes beyond the Supreme Court's judgment?"
He also rejected claims that the Yellow Envelope Law encourages illegal strikes, saying, "The industry-wide labor union has never once said it would stage an illegal strike, and it also said it would comply with the court's injunction decision."
Meanwhile, Kim said he plans to hold an emergency forum on June 1 to discuss the social distribution of excess profits at large companies.
jhyuk@fnnews.com Kim Jun-hyuk Reporter