Samsung with Labor Union

Declaration of the End of 'No-Union Management'
Subsidiaries' Oversight and Influence Expected to Increase

On the 6th, when Lee Jae-yong, Vice Chairman of Samsung Electronics, made a public apology regarding the succession of management rights, non-union management, and communication with civil society, the Seocho-dong headquarters was quiet. Photo by Moon Honam munonam@

[Asia Economy Reporter Dongwoo Lee] Samsung Group has declared the end of its "no-union management" policy that lasted for 82 years since its founding, bringing the establishment of smooth labor-management relations as a new challenge. As the psychological barrier to joining labor unions breaks down, significant momentum is expected not only for Samsung Electronics and Samsung Display but also for the formation of unions in major affiliates.

According to the business community and the Federation of Korean Trade Unions on the 7th, the number of union members at Samsung Display, which was established three months ago, has reached around 2,000 as of this date. This accounts for about 8% of Samsung Display's total employees (approximately 25,000), indicating that the number of union members is increasing faster than expected.

The business community views Vice Chairman Lee Jae-yong's de facto declaration of ending no-union management yesterday as a turning point that will increase the checks and influence of unions in major affiliates. In fact, six unions under the Korean Confederation of Trade Unions, including Samsung Electronics, Display, SDI, and Fire & Marine Insurance, announced the launch of the "Samsung Group Union Solidarity" immediately after Lee's public apology. This signifies a commitment to jointly respond to labor issues arising within Samsung Group going forward.

The Union Solidarity aims to replace the labor-management councils that have so far acted in place of unions within Samsung. The union side explains that employees have been unable to voice their opinions because the unions delegated collective bargaining rights to the labor-management councils.

They have also been steadily asserting their power. On the 29th of last month, the Samsung Electronics union submitted a "request for correction regarding the public notice of bargaining demand" to the Gyeonggi Regional Labor Relations Commission, citing the company's lack of response to collective bargaining demands. Samsung Display's union also plans to request a preliminary meeting with management this month to begin formal negotiations.

However, concerns have been raised that the rapid strengthening of union influence could worsen labor-management relations or lead to a structure that causes constant conflicts. There is a worry that chronic labor disputes, like those seen in automakers classified as militant unions, could undermine corporate competitiveness.

Some in the business community hope that, since Samsung has taken its first step away from no-union management, it will set a model case for establishing advanced labor-management relations. A business official urged, "As a responsible economic actor, the unions within Samsung Group should not use their activities solely as political tools but should become exemplary cases for spreading labor-management cooperation."

Lee Eun-ho, Director of Media and Public Relations at the Federation of Korean Trade Unions, said, "With Vice Chairman Lee's decision, if smooth labor-management relations are established, we expect Samsung to become a better company."

This content was produced with the assistance of AI translation services.