Labor Ministry Says Honam Semiconductor Is Not a Bargaining Issue, Putting the Brakes on Samsung Union’s Yellow Envelope Act Push

[Financial News] Labor authorities have pushed back against Samsung Electronics' union, which said it would put Samsung's large-scale Honam Semiconductor investment on the bargaining table in next year's wage negotiations as the Yellow Envelope Act takes effect. The ministry said it would be unreasonable to treat the semiconductor investment itself, a management decision, as a subject of collective bargaining or labor dispute.
According to the government on the 14th, the Ministry of Employment and Labor (MOEL) issued a press explanation on the 13th, saying, "Corporate investment and factory expansion cannot be regarded as subjects of collective bargaining under the revised labor law."
Earlier, the Samsung Electronics branch of the Samsung Group's supra-company union, the company's largest labor union, said it would address the government's Honam Semiconductor mega-project as a bargaining agenda item next year. The union said 84% of members opposed the Honam Semiconductor investment in an internal vote.
The union is citing the revised labor law as the main basis for its demand. Article 2, Clause 5 of the revised law expanded the scope of labor disputes from "disagreements over claims concerning working conditions such as wages, working hours, welfare, dismissal and other treatment" to "disagreements over management decisions that affect working conditions such as wages, working hours, welfare, dismissal, employee status and other treatment."
In a statement released the previous day, the supra-company union said, "Under the Yellow Envelope Act, business decisions that affect members' working conditions have also become subject to bargaining." It added, "This project, which involves the jobs and treatment of tens of thousands of workers, must be pursued through dialogue with the union. We intend to address the Honam Semiconductor project in the 2027 negotiations."
In response, MOEL drew a clear line, saying, "Management decisions themselves, such as corporate investment and factory expansion, are difficult to view as having a substantial and specific impact on working conditions, and therefore are not included in the scope of collective bargaining or labor disputes under the revised labor law."
The ministry also argued that its interpretation guidelines for the revised labor law, prepared by the government, explain that management decisions themselves, including corporate investment, mergers, spin-offs and transfers, are not bargaining issues because they are difficult to regard as having a substantial and specific impact on working conditions.
However, the government said that if the Honam Semiconductor investment process includes decisions that affect existing workers' wages, working environment or welfare, those issues could become subjects of bargaining.
MOEL added, "If the implementation or realization of such management decisions causes substantial and specific changes in working conditions, matters related to those working conditions may become subjects of bargaining."

jhyuk@fnnews.com Kim Jun-hyeok Reporter