South Korea: Lee says rights of management should be respected as much as labor rights
Seoul, May 18
South Korean President Lee Jae Myung said on Monday that companies' management rights should be respected as much as labor rights.
Lee posted the message on his X account as Samsung Electronics Co. and its unionized workers began negotiations for a last-minute breakthrough ahead of the union's planned 18-day strike starting Thursday.
"In South Korea, which has adopted the basic orders of democracy and free market economy, labor should be respected as much as companies, and corporate management rights should also be respected as much as labor rights," Lee wrote.
Workers are entitled to fair compensation for their labor, while shareholders are entitled to a share of corporate profits in return for bearing the risks and losses, Lee said.
Samsung's management and labor union have remained far apart over performance-based bonuses tied to the company's record-high earnings from the artificial intelligence (AI)-related semiconductor business, with the union said to be demanding 15 per cent of the company's operating profits as such bonuses.
Due to the company's record-breaking earnings on the AI-driven semiconductor boom, the demanded bonus pay could amount to as much as 45 trillion won ($29.9 billion) on an annual basis, more than four times the amount the company paid in dividends to all shareholders last year and also far higher than the amount the company is expected to pay in dividends this year.
"Although the basic rights of all people are guaranteed under the Constitution, they may be restricted for the sake of public welfare within the limits that do not undermine their essential foundations," the president noted.
The president also warned that asking for too much may lead to negative consequences, stressing the need for solidarity, responsibility and shared prosperity, Yonhap news agency reported.
Lee's call came a day after Prime Minister Kim Min-seok warned that a possible strike could cause serious damage to the national economy. He said the government "will have no choice but to consider all possible response measures, including emergency arbitration, in order to protect the economy."
Under South Korean labor law, the labor ministry can invoke an emergency adjustment measure that could suspend a collective action for up to 30 days if the strike is deemed likely to cause serious harm to the national economy or disrupt the daily lives of citizens.
— IANS
Reader Comments
President Lee's point about respecting both labor and management rights is balanced. But 45 trillion won as bonuses? That's four times the dividend payout! The government threatening emergency arbitration seems a bit heavy-handed though. Unions have a right to negotiate, but maybe workers should also consider the bigger picture—like the company's long-term competitiveness.
This reminds me of the Maruti Suzuki strike in India some years back. Unions demanding huge shares can hurt the company's ability to invest in R&D and growth. Samsung's AI chips are making them billions, but if they agree to such high bonuses, it might set a precedent. The President is right—solidarity and shared prosperity are key, not just taking more than what's reasonable.
As an American living in India, I find this debate fascinating. In the US, such a high bonus demand would likely be met with lawsuits or layoffs. President Lee's call for balance seems sensible. But threatening emergency arbitration feels like a step too drastic. Let the negotiations play out. Both sides need to compromise—maybe a 5-7% profit share would be more sustainable.
The government's warning about 'serious damage to the national economy' sounds like the classic Indian approach too—often used to justify anti-union measures. But workers are not just costs; they're partners in success. If Samsung's AI boom is because of worker efforts, they deserve a fair share. However, 15% of operating profits is indeed huge. Hope they negotiate around 8-10% and include a profit-sharing plan for future years.
Respectfully, I think
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