South Korea: Lee says rights of management should be respected as much as labor rights

Seoul, May 18 (SocialNews.XYZ) 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.

Source: IANS