In a special recommendation regarding labor unions' demands for profit distribution, the federation stated, "Labor unions are seeking to formalize a system that allocates a certain percentage of operating profits to their members. This differs from existing performance bonus systems, as it directly demands a share of corporate profits."
Previously, the Samsung Electronics Union had announced plans for a general strike to demand performance bonuses tied to this year's operating profits. Although the two sides reached a temporary agreement just before the planned strike, calls for expanded performance bonuses linked to corporate results have continued, particularly among large companies.
The federation emphasized that corporate profits are essential resources for investment, employment, research and development (R&D), and improving financial structures, all of which are vital for a company's sustainability and future competitiveness.
It also noted that the unions' proactive demands for profit sharing could restrict shareholders' rights, pointing out that it is rare to find global companies that distribute a predetermined percentage of profits to workers in advance agreements.
The federation explained that it has prepared recommendations to help companies operate performance bonus systems rationally. It stressed that bonuses based on operating profits and other management performance metrics should not be classified as wages.
"The Supreme Court has consistently ruled that performance distributions, which vary based on management results, are not closely related to the provision of labor and are significantly influenced by factors beyond the control of workers," the federation stated.
The federation argued that establishing criteria for profit distribution is a matter of management discretion and should not be subject to collective bargaining. It clarified that mandatory subjects for collective bargaining under labor law are limited to working conditions such as wages, working hours, welfare, and dismissals.
The federation concluded that companies have no legal obligation to comply with labor unions' profit distribution demands and warned that strikes aimed primarily at profit distribution could be deemed unlawful.
Furthermore, it emphasized that performance bonus systems should be operated based on the principles of corporate sustainability and performance-oriented practices.
* This article has been translated by AI.
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