[Reporter’s Notebook] The Meaning of Modern-Day Luddites and Idle Factories

'Workers who smashed machines and shut down factories in protest against new technology' vs 'Workers who shut down factories to claim a greater share of the benefits from the introduction of new technology.'

These are emblematic scenes from 19th-century Britain during the Industrial Revolution and 21st-century South Korea's industrial sites, respectively. Leading companies that form the backbone of the nation’s economy—such as Samsung Electronics, Hyundai Motor Company, HD Hyundai Heavy Industries, and Samsung Biologics—are all facing labor-management conflicts related to wages, bonuses, and the introduction of robotics. As artificial intelligence (AI) and robotics drive a period of rapid industrial transformation, many imagined that a 'modern-day Luddite movement' would eventually unfold. However, few anticipated that its starting point might be in Korea, or that it would occur even before the threat of job insecurity fully materialized.

There are striking similarities between the extremity of the Luddite movement and the recent strikes by labor unions at major Korean corporations. Take the case of the Samsung Biologics labor union: the union shut down factory operations earlier this month, demanding a real wage increase of around 21% and performance bonuses amounting to 20% of the company’s operating profit. The company suffered losses of 150 billion won due to production disruptions caused by the strike, but the union is still considering a second strike. Amid this, the union leader leading the industrial action has come under police investigation for the unauthorized leak of confidential documents, such as tax invoices from the company’s PR department. The union's demand for prior consent before adopting new technologies and equipment mirrors the historical pattern of blocking industrial progress and ultimately threatening their own workplaces, as seen in the 19th century.

Another similarity is that new technology underpins these extreme actions. Workers are expressing fears of being replaced with radical industrial action. Yet history has shown that new technologies have not eliminated work; instead, they have created new and better jobs. In contrast, companies and workers who resisted technological change have been left behind.

What distinguishes the current situation from the Luddite movement is the scale of the impact when work comes to a halt. Today’s industries are intricately interconnected, and those in the materials, parts, and equipment sectors have formed complex value chains. While employees at large companies stop work to secure greater bonuses, others are left worrying about their livelihoods. This is a key reason why labor strikes are facing more public criticism than ever before.

The excess profits generated by our companies today should not be used to toast and celebrate. In a global environment where the race for technological supremacy is as precarious as walking on thin ice, rival companies are investing astronomical amounts of capital into research and development to secure the next paradigm. The profits being made now must be prioritized for securing the next generation’s growth engines and advancing cutting-edge technology. During such a paradigm shift, the responsibility that labor and management must shoulder together is not the immediate distribution of profits, but the insight and foresight needed for a sustainable future.

This content was produced with the assistance of AI translation services.