Samsung Electronics union members hold a rally calling for the abolition of the cap on performance-based bonuses near its plant in Pyeongtaek, Gyeonggi Province, April 23. Newsis

As Samsung Electronics braces for a potentially historic strike later this week, the government’s rarely used “emergency adjustment” power has resurfaced as a viable option. Officials are publicly warning that if a walkout at the chip giant disrupts production and exports, they may enact a measure that can forcibly halt a legal strike and push the dispute into state-led arbitration.

This emergency power is outlined in Article 76 of the Trade Union and Labor Relations Adjustment Act, which allows the labor minister to intervene when a dispute is deemed to pose a significant risk to the national economy or to people’s daily lives.

This is regarded as a last resort because it forcibly suspends an otherwise lawful strike and can expose workers and unions to legal risks.

Once the minister invokes the measure, unions must immediately halt any ongoing strike and are barred from staging industrial action for up to 30 days. If they defy the order and continue walkouts, the action can be treated as an illegal strike, exposing union leaders and other members to possible criminal penalties and opening the door for employers to seek damages.

During this period, the National Labor Relations Commission takes over the dispute and runs compulsory mediation and, if needed, arbitration procedures. In the case of a private firm, a three-member panel — representing labor, management and the public interest — is formed to lead the process.

If mediation is deemed to show no progress, the case can move to arbitration for up to 15 days. The panel members may force a deal, and the final decision has the same binding effect as a collective agreement. The parties involved have a legal responsibility to follow the process.

Although the measure was introduced in 1963, past administrations were extremely cautious about using it, and it has been deployed just four times.

The first case came in 1969, when workers at Korea Shipbuilding and Engineering went on general strike on Aug. 1, prompting the government to invoke an emergency adjustment on Sept. 18. Authorities justified the move by pointing to severe damage to exports and the broader economy, after the delivery of 20 fishing vessels bound for Taiwan was delayed.

The dispute eventually ended through negotiations, with labor and management reaching a settlement on their own.

Source: Korea Times News