Seoul Curbs Mandatory Bargaining, Critics See Labor Rights Breach

The guidelines, announced by the Ministry of Employment and Labor on the 3rd, specify that demands for performance bonuses tied to sales, operating profit, or net income are not subject to labor disputes. The ministry said such bonuses draw on funds needed for R&D, facility investment, and dividends, and that pre-distributing a fixed share would constrain a company's freedom of business. Instead, it recommended unions negotiate bonuses based on a fixed amount or a percentage of base salary.

The guidelines also state that management decisions such as building new factories, selling or acquiring businesses, or adopting new technologies like artificial intelligence cannot alone be grounds for a dispute. Bargaining is only permitted when such decisions objectively lead to specific changes in working conditions, such as layoffs, restructuring, or reassignments.