Labor ministry's new guidelines exclude profit-linked bonus demands from mandatory bargaining

In a recent development, the labor ministry has introduced new guidelines for labor negotiations, clarifying that profit-linked bonus demands cannot be a mandatory subject of collective bargaining. These guidelines aim to provide clarity on the revised trade union law that came into effect in March, while also expanding the bargaining rights of subcontracted workers and increasing the accountability of prime contractors.

The new guidelines address several key labor issues that have recently affected the country. One notable example is the performance bonus demands from Samsung Electronics' labor union, as well as plans to build a new semiconductor complex in the country's southwest. According to the guidelines, performance bonus demands fixed to a certain percentage of a company's profit can be a voluntary subject of bargaining, but they do not fall under mandatory subjects of negotiation.

The trade union law allows for collective bargaining on certain labor issues, but the new guidelines clarify the extent of legally permissible negotiations between labor unions and employers. This clarification comes as a response to recent ambiguity surrounding the negotiation process between the two parties.