KCTU Chief Gives Lee Jae-myung Administration '70 out of 100' for First Year, Says Performance Bonuses Subject to Labor Negotiations

Yang Kyeong-soo, president of the Korean Confederation of Trade Unions (KCTU), evaluated the first year of the Lee Jae-myung administration as "70 points," saying, "It is difficult to give it either a good score or a failing grade."

Regarding the government's stance on the distribution of excess profits of large conglomerates, he claimed, "There are concerns that distribution is being sidelined and the focus is being placed on corporate growth," adding, "Performance bonuses are also subject to labor-management negotiations."

During a press conference on the first year of the Lee Jae-myung administration held today (June 10) at the KCTU headquarters in Jung-gu, Seoul, Yang replied to a question asking for his evaluation of the current administration, saying, "Looking back on the past year, it still remains at around 70 points."

In a media interview in September last year, Yang had evaluated the administration's first 100 days, giving it "80 out of 100 points."

Yang said, "While there are many positive directions in the government's labor policies, it feels like lighting a fire in a furnace but feeling no warmth," adding, "There are concerns that rather than establishing policies centered on labor rights, the government is still buried only in distribution through growth."

Yang said, "We must resolve polarization in the labor market and build trust that subcontracted and indirectly employed workers can be treated fairly and make a living through wage income," adding, "With such concerns, it is difficult to give a high score, but also hard to give a failing grade."

Regarding the distribution of excess profits of large corporations, Yang pointed out, "There are unclear points about what criteria to use for calculation," noting, "During the Samsung Electronics union strike, they demanded 15 percent of operating profits, but what to do with the remaining 85 percent was not discussed."

Yang said, "Just as there was a discussion on a 'windfall tax' due to the massive profits of oil refiners when oil prices skyrocketed four to five years ago, such discussions will be repeated during booms in each industry," adding, "We must consider social contribution through tripartite discussions among labor, management, and the government."

Regarding a proposal to mandate shareholder approval for "performance bonuses of N% of operating profit," Yang expressed opposition, saying, "The distribution of operating profit is a matter that requires discussion with workers," and "Creating a mechanism through shareholder meetings is a means of evasion."

Yang viewed that performance bonuses could be included in strike agendas, saying, "The very fact that the government and the National Labor Relations Commission mediated the labor-management negotiations at Samsung Electronics indirectly confirmed that performance bonuses are subject to labor-management negotiations."

Yang said, "There are concerns that the retreating attitude of Employment and Labor Minister Kim Young-hoon and President Lee, who were enthusiastic in the beginning, suggests that the issue of distribution is being sidelined and the focus is being placed on corporate growth."

Yang announced that he would release the labor community's stance on the distribution of excess profits next week, along with representatives of labor unions from large conglomerates.

Regarding the "Yellow Envelope Act" (a labor law revision limiting companies' damage claims against striking workers), he pointed out that negotiations with prime contractors are not practically taking place, and urged the government to play a more active role as an exemplary employer.

"The government's role is needed as companies deny their status as employers and evade negotiations," Yang said. "The government must play an active role as an exemplary employer."

According to the KCTU, since the Yellow Envelope Act took effect on March 10, 527 industrial unions under the KCTU have requested negotiations with 485 prime contractors, but the Incheon Medical Center is the only workplace where negotiations are actually taking place.

Yang emphasized, "We will focus on negotiations with prime contractors and launch a general strike on July 15."

Regarding discussions on extending the retirement age, Yang stated, "It is very concerning that the Democratic Party of Korea is trying to give employers the authority to determine wages," adding, "Wages are subject to negotiation, and giving authority unilaterally to employers does not align with the direction of guaranteeing workers' retirement income."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.