KCTU Denounces KEG Proposal to Exclude Performance Bonuses from Dispute Subjects as 'Labor Regression'

▲ KCTU Chairperson Yang Kyung-soo and union members chant slogans holding placards during a KCTU struggle declaration rally held in Sejong-ro, Seoul, on March 10, the first day of the implementation of the 'Yellow Envelope Act.'

The Korean Confederation of Trade Unions (KCTU) has denounced the Korea Enterprises Federation's (KEF) argument that performance bonuses should be excluded from the scope of labor disputes, criticizing it as a demand for "labor regression."

As the scope of subjects for labor disputes has expanded following the implementation of the Yellow Envelope Act, tensions between labor and management are intensifying while the Ministry of Employment and Labor considers drawing up enforcement decrees and regulations to specify criteria for dispute subjects.

In a statement today (August 18), the KCTU said, "The KEF's 'Management Proposals on Recent Labor Issues' is nothing more than a document representing the interests of capital and the business circle to suppress workers' legitimate demands and strip them of their labor rights."

The KCTU criticized the KEF's demand to exclude performance bonuses from labor dispute subjects, stating, "Operating profits are achievements created through the contributions of workers, and their distribution is an issue directly tied to wages and working conditions."

It also emphasized, "For capital to arbitrarily tailor the scope of bargaining agendas in its favor and attempt to enshrine this through administrative legislation is an act that destroys the fundamental labor law principle of equal labor-management bargaining."

It added, "We strongly condemn attempts to make workers' health rights and employment stability scapegoats under the pretext of fostering national strategic industries."

Furthermore, it pointed out, "The KEF's demand is effectively a request to hollow out the 52-hour workweek and fully legalize long working hours," adding, "Relaxing regulations on fixed-term and dispatched workers is no different from a regression that mass-produces irregular workers and structures job insecurity."

In addition, the KCTU expressed concern, stating, "The government must unwaveringly maintain the principle that core issues, such as exemptions to the 52-hour workweek, require deliberation with the labor community and local society," and warning, "It must not rush labor regression by yielding to the KEF's unilateral demands."

The KCTU warned, "We will never tolerate any legislative attempts that exclude the voices of workers," and vowed, "If the KEF's proposals are reflected in government policies, we will block them with all our might."

The KEF argued in its 'Management Proposals on Recent Labor Issues' released yesterday that high-level managerial decision-making by companies, such as performance distribution linked to operating profits or the establishment of new factories, should be excluded from the subjects of labor disputes.

It also proposed introducing measures to strengthen labor flexibility—such as easing working hours and employment regulations—in mega special zones.

(Photo: Yonhap News)

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