Lee Targets Samsung Electronics Union: "Excess Is as Bad as Deficiency"... On Starbucks, Musinsa: "Crossed the Line of Common Sense" (Comprehensive)

President Lee Jae-myung Presides Over Cabinet Meeting on May 20

On the Eve of Samsung Electronics General Strike, Mediation Fails... "There Should Be Reasonable Limits to Collective Bargaining"

"Three Basic Labor Rights Are for Protecting th

President Lee Jae-myung commented on the Samsung Electronics labor union's plan to exercise its collective bargaining and industrial action rights, which includes a general strike announced for May 21, stating, "It is understandable to work hard to achieve one's interests, but there should be reasonable limits." He emphasized that while the three basic labor rights are constitutional tools to protect workers, who are often socially disadvantaged, they should not be abused as a means for certain groups to pursue only their own interests.

President Lee Jae-myung is speaking at the Cabinet meeting and Emergency Economic Inspection meeting held at the Blue House on the 20th. Photo by Yonhap News.

During his opening remarks at the 22nd Cabinet Meeting and the 9th Emergency Economic Inspection Meeting held at the Blue House on May 20, President Lee stated, "The three basic labor rights exist to protect workers, who are socially vulnerable, and a crucial principle of solidarity and responsibility is at play." This message comes as the largest union at Samsung Electronics, the Samsung Electronics Branch of the Samsung Group Enterprise Trade Union, has announced a general strike starting May 21, amid ongoing labor-management conflicts over institutionalizing performance-based bonuses and profit-sharing. The President directly addressed the dispute.

As of the morning of the same day, labor and management at Samsung Electronics continued post-mediation negotiations at the Central Labor Relations Commission but ultimately failed to reach an agreement. The union maintained its plan to begin a general strike on May 21, while management stated, "The union did not withdraw its demands for compensation at a level that would be socially unacceptable even for deficit-ridden business units," maintaining that such demands are unacceptable. The union has previously demanded that 15% of the operating profit from the semiconductor division be allocated as the performance bonus fund, the removal of the bonus cap, and broader distribution across business units.

In response, President Lee explained the fundamental principles of corporate profit distribution and pointed out the limits of the union's demands. He said, "Companies have investors who bear risks and losses, and since they shoulder these burdens, it is natural that they have the right to share in the profits. It is the investors and shareholders who receive profit distributions from operating income."

President Lee added, "Fair compensation for labor must be guaranteed. However, to institutionalize the distribution of a fixed percentage of operating profit before taxes—which can be considered the shared assets of the people—is something even investors cannot do." He continued, "Even investors receive dividends from net profit after taxes. Personally, I find this difficult to understand."

He further stressed that the three basic labor rights should not be exercised solely as a means to advance the interests of particular groups. President Lee stated, "The three basic labor rights are not collective powers given solely to force through the interests of individuals or a select few. They are constitutional mechanisms intended to provide a balance of power to the vulnerable in order to maintain appropriate social equilibrium." He added, "A company involves various stakeholders, including investors, workers, creditors, consumers, and related companies within the business ecosystem. No one side should unilaterally cross the line."

President Lee also said that the ultimate responsibility for mediation lies with the government. He stated, "It is a major role of the government to ensure that all members of society respect reasonable boundaries and are able to exercise their rights and express themselves freely within those boundaries. However, when those boundaries are crossed, the government must fulfill its responsibilities for the good of the entire community."

President Lee Jae-myung enters the Cabinet Meeting and Emergency Economic Inspection Meeting at the Blue House on the 20th. Photo by Yonhap News Agency

In addition, President Lee criticized recent controversies over historical distortion and mockery, grouping them as issues concerning the "boundaries of common sense." He said, "For society to function properly, appropriate boundaries must be observed. The most important thing is the boundary of common sense."

This is seen as a reference to the recent controversies surrounding Starbucks Korea's "May 18 Tank Day" event and past advertising issues involving Musinsa. Starbucks faced criticism for holding a tumbler sales promotion on May 18, the anniversary of the May 18 Democratization Movement, using phrases like "Tank Day" and "Bang the Desk!" The event was criticized for evoking memories of the military's tank entry during the May 18 Gwangju Uprising and the torture death of Park Jong-cheol. Musinsa faced backlash in 2019 for an advertisement with the phrase "I banged the desk, and he gasped and died," which was accused of mocking the Park Jong-cheol torture death case.

President Lee remarked, "It is appalling how frequently expressions concerning the May 18 Gwangju incident or the suffering of tragic victims are being made—so much so that one wonders how such things could be said by people. Moreover, these are not just comments made by individuals in private but are acts committed in public forums by responsible figures in an organized and systematic manner." He continued, "Even if such actions do not meet the criteria for criminal punishment or sanctions, should they really be tolerated? There are also standards of humanity and morality to which people should be held."

President Lee concluded, "With rights come obligations, and with authority comes responsibility. While it is important to pursue personal interests, it is also necessary to reflect on the sense of solidarity and responsibility that exists beneath the surface. Excess in anything is worse than deficiency."

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