EXPLAINER How Korea's little-used power to freeze legal strike works

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.

Graphic by Cho Sang-won

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.

The second case came in July 1993, during a groupwide strike by Hyundai Group unions. At the time, Hyundai management refused to negotiate wages and reach a collective agreement with its union, which led to a general strike. The two parties reached an agreement on July 21, just one day after the emergency adjustment order was announced.

Korean Air pilots’ union members in Incheon board vehicles heading to the airline’s headquarters following the government’s invocation of its emergency arbitration power, in this December 2005 file photo. Korea Times

The third and fourth cases both came in 2005, during airline strikes.

That year, Asiana Airlines pilots went on strike on June 1, causing transport disruptions and revenue losses for the firm. On Aug. 10, the government invoked the emergency measure and opened mediation, but talks collapsed. The National Labor Relations Commission later forced a deal, which was issued on Sept. 9.

The most recent instance came later that year, during a walkout by Korean Air pilots that began on Dec. 8. Citing massive flight disruptions and inconvenience to the public, the government moved to impose an emergency adjustment just three days later. Mediation again collapsed, and a final arbitration award was issued on Jan. 10 the following year.

It almost happened again in October 2016, when the Hyundai Motor union was preparing to launch a strike. However, labor and management struck an agreement at the last moment.

If the government now formally declares an emergency adjustment over the Samsung dispute, it would be the first time the measure has been invoked in nearly 21 years. The Samsung Electronics unions said that if final talks collapse, their strike will begin Thursday.