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

The labor ministry released new guidelines on Thursday, clarifying that profit-linked bonus demands cannot be a mandatory topic in labor negotiations. These guidelines stem from the revised trade union law, which came into effect in March. The law broadens the scope of negotiations involving subcontracted workers and enhances the accountability of prime contractors.

However, it has also led to confusion regarding the permissible range of negotiations between labor and management. The guidelines specifically address contentious issues like performance bonus demands, which Samsung Electronics' labor union had previously sought. Under the new guidelines, performance bonuses based on a set percentage of a company's profits remain a voluntary negotiation point rather than a mandatory requirement.

While the trade union law permits voluntary discussions on such matters, it does not extend to making them mandatory.