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Government Rejects Union's Demand to Negotiate Semiconductor Cluster Plans, Citing Labor Law Limits

The Samsung Electronics Super-Enterprise Union recently announced its intention to include the government-promoted semiconductor cluster in the Honam region as an agenda item for next year's labor-management negotiations. In response, the Ministry of Employment and Labor dismissed the claim, stating that such matters do not fall under the scope of collective bargaining or labor disputes as defined by the amended Trade Union and Labor Relations Adjustment Act.

The union countered that the project directly impacts working conditions, making it a valid subject for negotiation under the so-called Yellow Envelope Law.

In a statement released yesterday (July 13), the union claimed, "A survey of our members showed that 84% oppose the Honam semiconductor mega-project." The union further alleged, "During a recent meeting, the company also expressed a negative stance on the project, stating that the management team feels burdened by it as well."

The union added, "Under the Yellow Envelope Law enacted by the government and the ruling party, business decisions that affect the working conditions of union members are subject to negotiation. As this project could impact the workplaces and treatment of tens of thousands of employees, we will address the matter in the 2027 negotiations."

In response, the Ministry of Employment and Labor issued an explanatory document refuting the union's position. The ministry stated, "Business management decisions, such as corporate investments or factory expansions, are difficult to view as having a direct and concrete impact on working conditions; therefore, they are not included as subjects for collective bargaining or labor disputes under the Yellow Envelope Law."

The ministry's stance is that management decisions—such as corporate investment, mergers, divisions, or transfers—do not, in themselves, exert a substantial influence on working conditions and thus cannot be subjects for negotiation.

However, the ministry added, "If the implementation of a business management decision leads to changes in working conditions, those specific matters regarding working conditions could become subjects for negotiation."

In response, the Samsung Super-Enterprise Union reiterated its position, stating, "The project will inevitably require some members to relocate their workplaces due to infrastructure work and other factors. Since this directly affects working conditions, it is a valid subject for negotiation." The union further stated that it plans to prepare for related collective bargaining sessions.
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