Samsung Display Faces Possible First-Ever Strike as Labor-Management Mediation Finally Breaks Down

[Asia Economy Reporter Jeong Hyunjin] The Samsung Display labor union is on the verge of its first-ever strike. After the breakdown of wage negotiations and mediation by the Central Labor Relations Commission, the Samsung Display union has secured the right to strike for the first time among Samsung Group affiliates.

According to industry sources on the 14th, the Ministry of Employment and Labor's Central Labor Relations Commission decided to suspend mediation regarding the wage negotiations between the Samsung Display union and management held that day. Suspension of mediation means that further negotiations are impossible and simultaneously grants the union a legal right to strike. This decision came after the Samsung Display union applied for mediation with the Ministry of Employment and Labor on the 4th due to the breakdown of wage negotiations. The Samsung Display union and management held two mediation meetings on the 11th and the 14th regarding the wage negotiation breakdown.

Samsung Display explained, "We have made considerable efforts to reach a smooth agreement with the labor union during the mediation process and requested an extension of the mediation period to continue additional talks for wage negotiations. However, no agreement was reached with the union on extending the mediation, and the mediators judged that the differences between both sides were significant, leading to the decision to suspend mediation." They added, "Although the labor dispute mediation process between the company and the union has ended, the company hopes that negotiations for wage talks with the union will resume in the future to maintain a harmonious labor-management relationship and continue mutual understanding and dialogue."

With the suspension of mediation decided by the Central Labor Relations Commission on this day, the Samsung Display union, having obtained the right to strike, is increasingly likely to carry out its first strike. If the Samsung Display union goes on strike, it will be the first strike among Samsung Group's electronics affiliates since Vice Chairman Lee Jae-yong of Samsung Electronics declared the end of no-union management in May last year.

Immediately after the suspension of mediation decision, the union stated, "We have rightfully obtained the right to strike," and added, "We will gather the opinions of union members to carefully plan and execute how to proceed with the strike." In a recent union member vote, the Samsung Display union received over 90% approval regarding the strike. The union plans to hold its first large-scale rally, which was planned before the suspension of mediation decision, on the 18th in front of the main gate of the Asan 2 Campus in Chungnam.

The Samsung Display union has been negotiating wages with the company since February but declared the breakdown of wage negotiations at the 8th collective bargaining session held on the 27th of last month, citing issues with the management's negotiation attitude. The union demands a basic wage increase rate of 6.8%, the actualization of hazard pay, and improved treatment for overseas business travelers. On the other hand, management maintains that anything beyond the basic increase rate of 4.5%, agreed upon with the labor-management council, is impossible.

The Samsung Display union was established under the Federation of Korean Trade Unions in February last year and currently has about 2,400 members, exceeding 10% of the total employees.

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