Korean Media: [Opinion] The Semiconductor Industry Should Be Deprived of Strike Rights Just Like the Military Industry

¬ The Constitution and Labor Union Act prohibit strikes in the military industry. The concept of "military" today should not be limited solely to weaponry... If it concerns national livelihood and future, it constitutes a clear security threat, and thus strike rights in the semiconductor industry should be restricted.

Article 33, Paragraph 3 of the South Korean Constitution stipulates that collective action (strikes) by workers in major military industries may be restricted or not recognized. Accordingly, Article 41, Paragraph 2 of the Labor Union Act specifically states that workers engaged in power generation, water supply, and production of key defense materials within major military industries are prohibited from engaging in dispute activities. In other words, they may form unions and conduct collective bargaining with employers, but cannot go on strike. Most citizens would likely agree on the necessity of restricting strikes under constitutional and legal frameworks.

Currently, South Korea’s major defense enterprises are densely concentrated near Changwon Industrial Zone in Gyeongsangnam-do Province. When large defense firms within the Changwan Industrial Zone faced strikes leading to shutdowns, and when a Samsung Electronics semiconductor plant was paralyzed due to labor unrest— which impact is more direct and severe for the nation and its people? I believe nearly all citizens would give the same answer.

In today's era, semiconductors are no longer ordinary commercial products. They are an essential tool for building artificial intelligence—a new human civilization—and have become South Korea’s core strategic material. In this context, “strategic” transcends economic and managerial dimensions; broadly speaking, it spans planetary scales, and narrowly speaking, it includes East Asian geopolitical dynamics and even South Korea’s national security strategy.

If someone were to ask: between domestically developed weapon systems such as the KF-21 fighter jet, Hyunmu missiles, Jangbogo-class III submarines, Cheonmyeong multi-barrel rocket launchers, K2 tanks, and K9 self-propelled howitzers, and semiconductors—which one is more critical for national security? I would unhesitatingly reply: “Semiconductors are more vital than all these weapon systems combined.” You cannot produce weapons without semiconductors, but with semiconductors, you effectively gain both the financial resources and technological capability needed to manufacture weapons. Weapon systems are about preparing for potential future wars—anticipatory measures—while semiconductors directly affect the current lives and futures of citizens and their children. In short, which poses a greater blow to the nation: a missile attack on Changwon Industrial Zone, or the bombing of Samsung and SK Hynix semiconductor plants?

It is said that union members in these strategic industries, earning over 100 million won annually, are staging strikes demanding higher wages. These individuals earn in a year what most Koreans would take a lifetime to save—yet they still feel insufficient, even seeking to institutionalize such demands. If their requests aren’t met, they threaten to destroy the semiconductor industry through strikes. This should not be viewed as a struggle by low-income unions fighting for survival, but rather as a full-blown interest group holding the national economy hostage—an act tantamount to national threat. This is not exaggeration. Consider the situation when Samsung’s semiconductor plants were occupied or shut down. If this isn’t an event at the level of national security, why did President Lee Jae-myung’s pro-labor government invoke emergency mediation powers over 20 years later to stop the Samsung Electronics union strike?

It is hoped that the government will use the threat posed by the Samsung union strike as an opportunity to reconsider whether core semiconductor industries should be redefined as broad-spectrum military enterprises. “Military” means safeguarding the nation. National defense is not only the responsibility of the armed forces. The exports of Samsung and SK Hynix alone account for 37% of South Korea’s total exports, and their market capitalization makes up 50% of the stock market. With a first-quarter GDP growth rate of 1.7%, excluding these two companies would reduce it to just 0.8%. Last year, all domestic corporations paid corporate taxes amounting to 84 trillion won (approximately RMB 37.97 billion), while these two companies alone are expected to pay over 100 trillion won (approximately RMB 45.2 billion) this year. The number of partner companies linked to Samsung Electronics alone exceeds 20,000. Isn’t it entirely justified to say such an industry plays a crucial role in “defending” the nation? In fact, the core components of advanced weapon systems are all semiconductors. It is hoped that during the next constitutional revision, the concept of “major military enterprises” be expanded to include “core enterprises whose survival is vital to the national economy,” and incorporated into Article 33, Paragraph 3 of the Constitution.

This is not merely a change of eras—it is a transformation of civilizations. We have already been swept up by this tide. We had pioneers like Lee Byung-chul in semiconductors and revolutionaries in management like Chung Ju-yung. But we also benefited from good fortune. The current boom in semiconductors is not due to our development of new technologies, but rather because the rapid arrival of the AI era suddenly created a bottleneck in semiconductor supply and demand. We must calmly acknowledge this reality. Now is not the time for strikes. To survive in the AI era, we must compete in research institutes against counterparts in China, the United States, and other nations.

For the same reason, the principle of “white-collar exemption” (Exemption) should also apply to strikes. This is a system adopted in countries such as the United States and Japan, which exempts high earners and professionals from legal limits on working hours or overtime pay. Currently, the threshold for high income in the U.S. and Japan is around 100 million won (approximately RMB 450,000). A person earning 100 million won annually has no need to worry about livelihood. I believe it defies social common sense for someone at this level to go on strike. While semiconductor production workers at Samsung may not be classified as white-collar, reports indicate that average annual salaries exceed 600 million won (approximately RMB 2.71 million) this year. Such individuals can participate in union activities—but must they really strike solely to earn more money? I believe this goes far beyond the scope that laws should protect.

Source: Chosun Ilbo

Original article: toutiao.com/article/1865771874372620/

Disclaimer: The views expressed in this article are those of the author(s) and do not necessarily reflect the official policy or position of any institution.