Gov't Labor Guidelines Leave Personnel Transfers in Dispute Risk
The government has presented standards that exclude management decisions themselves, such as demands for performance bonuses linked to operating profits and the establishment of new factories, which have been long-cherished desires of businesses, from mandatory collective bargaining targets. However
The government has introduced guidelines that exclude certain management decisions, such as performance bonuses tied to profits and the creation of new factories, from mandatory collective bargaining targets. This has left the industrial sector uncertain, as it still allows for personnel relocation to be a bargaining point in labor disputes.
Performance bonuses and investment decisions are explicitly excluded from collective bargaining, but personnel management plans, like layoffs and job restructuring, may be negotiated under specific circumstances. This has sparked concern among businesses, who argue that the exception for personnel relocation could be misused to bargain over essential aspects of new investments.
The 800 trillion won Honam Semiconductor Project, a high-tech initiative, is particularly at risk, as ongoing strikes could delay its progress. Experts warn that such guidelines could inadvertently grant trade unions significant control over investments, potentially sidelining domestic companies in a global race to advance semiconductor production.
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