Labor minister says Samsung union's 'Honam investment bargaining' runs counter to Yellow Envelope Act, vows guidance

[Financial News] Kim Young-hoon, Minister of Employment and Labor, reaffirmed on the 21st that it is "contrary to the purpose of the revised union law" for a labor union to make a company’s large-scale investment a subject of labor dispute. He was again drawing a line against the Samsung Electronics labor union’s claim that a Honam semiconductor investment should be included in next year’s bargaining agenda.
As President Lee Jae Myung called for proactive administration to reduce social conflict over the issue, Kim said, "I will make the purpose of the law clear once again."
At the State Council of South Korea meeting held at Cheong Wa Dae on the 21st, Kim said, "I judge that making Samsung Electronics' business decision itself — to build a large semiconductor plant in Gwangju — the subject of a labor dispute does not fall under the legal interpretation."
The remarks came after President Lee mentioned the case of the Samsung Electronics branch of the Samsung Group Supercorporate Labor Union, which said it would make the Honam semiconductor project a labor dispute issue for next year. Lee said, "If this goes on, won't the scope of labor disputes expand without limit? It would be better to settle it at an appropriate level," adding that "providing a certain standard for labor law is also the government's role."
Kim explained, "When legislation is enacted, interpretive guidelines are issued first. We have issued case-based guidance on whether this falls under management decisions that affect working conditions, and under that standard, it is judged not to apply."
Earlier, the Samsung Group-wide Labor Union said it would include the company's large-scale Honam semiconductor investment plan in next year's bargaining agenda, citing the Yellow Envelope Act, or revised labor law, which expanded the scope of labor disputes to include "management decisions that affect working conditions." The union said 84% of members opposed the Honam semiconductor investment in a vote.
The Ministry of Employment and Labor later issued a rebuttal statement saying that management decisions themselves, such as corporate investment and factory expansion, are difficult to regard as having a substantial and concrete effect on working conditions, and therefore are not included in collective bargaining or labor dispute matters under the revised labor law.
Kim said, "If a large plant is built in Gwangju, people working in Yongin or Suwon may delay transfers and assume they would have to move there." He added, "Even though that decision itself has not happened yet, for Samsung Electronics' management decision to make a large investment to be treated by the union as a labor dispute issue runs counter to the purpose of revising the union law."
He added, "We are in the process of settling the revised law through on-site guidance and interpretive guidelines." He continued, "We will properly guide the union through local offices on what led to such claims, and we will make the purpose of the law clear once again."

[email protected] Kim Jun-hyuk Reporter