Minister of Employment and Labor Kim Young-hoon stated that under the government's recently announced guidelines for the enforcement of the Yellow Envelope Act, the strike held last May by the Samsung Electronics labor union demanding a performance bonus based on a percentage of operating profit would be deemed illegal.

However, because Samsung Electronics management and labor have already established bonus payment methods through collective agreements and other means, the new guidelines will not be applied retroactively.

Appearing on SBS Radio's political show hosted by Kim Tae-hyun today (the 8th), Minister Kim explained regarding questions about the new guidelines, "There was a critical awareness of whether it is right to deduct performance bonuses like paying interest in advance before paying taxes when a company generates operating profit through its activities."

He noted, "Not all performance bonuses are excluded from the scope of collective bargaining," but added, "The intent is to restrict demands for a certain percentage of operating profit as performance bonuses before taxes are paid, as this could mislead foreign investors and lead to dampened investment or weakened corporate competitiveness."

In response to the question, "While the Samsung Electronics strike cannot be retroactively penalized, would it be considered an illegal strike under the guidelines?", Minister Kim answered, "Yes. I believe it is difficult to deduct a percentage of operating profit first before proceeding."

In the enforcement guidelines announced on the 3rd, the Ministry of Employment and Labor specified that demanding performance bonuses linked to corporate profits carries the risk of infringing upon the rights and interests of third parties, such as the state and shareholders, and excessively restricts a company's managerial decisions and execution, making it difficult to view such demands as mandatory subjects for negotiation.

However, since Samsung Electronics management and labor have already determined the bonus payment method through collective agreements, the new guidelines will not apply retroactively.

Minister Kim emphasized, "The law is difficult to apply in a black-and-white manner, and precedents need to be accumulated," adding, "What we lack is not the system, but trust."

Regarding the controversy surrounding the introduction of the white-collar exemption (exemption of high-income professionals from working hours regulations) under the Special Act on Mega-Special Zones currently pursued by the ruling party and government, he acknowledged the need to secure flexibility while maintaining a cautious stance.

Minister Kim stated, "While it is true that we must strike while the iron is hot, granting an unlimited exemption is a matter that requires a different approach," and added, "If the labor, management, and government pool their wisdom through innovative methods rather than competing on the sheer volume of working hours, we can find a way to ensure flexibility while protecting workers' health."

Concerning the exclusion of the unemployment benefits provision for voluntary resignees under the age of 35 from next year's budget bill, he explained that it was put on hold due to concerns over side effects.

Minister Kim said, "The intent was to give youth another chance because many cases, while voluntary in formal terms, are involuntary in substance due to initial adjustment difficulties," and noted, "Amid some criticism, we decided not to reflect it in next year's budget bill for now."

Meanwhile, Minister Kim, a former railway engineer, evaluated the integrated operation of KTX and SRT as "putting an end to the privatization controversy."

Minister Kim stated, "The reason a perfectly fine railway was split into two was essentially a preliminary step toward privatization, and although it was called a competitive system, it only increased complaints," adding, "We have put an end to the privatization controversy that has dominated our society."
 
(Photo: Yonhap News)