Samsung Display Labor and Management Reach Wage Agreement After First Strike Since Establishment

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Samsung Display's labor and management signed a wage agreement on the 8th after more than five months of wage negotiations.

Samsung Display's labor and management announced that at 2 p.m. on the same day, they held a 'Wage Agreement Signing Ceremony' at the Asan 1 Campus in Chungnam, attended by Kim Beomdong, Head of HR Team (Vice President), and labor union negotiation committee members including Kim Jeongran and Lee Changwan, labor union chairpersons. Team Leader Kim said, "Although there were conflicts along the way, I am grateful to both labor and management negotiators who reached an agreement through communication and trust, following the collective agreement and now the wage agreement," adding, "The company will also build a win-win labor-management model for the development of both the company and its employees based on this experience."

Since signing a collective agreement covering 109 clauses in January, Samsung Display's labor and management have been conducting wage negotiations for over five months starting from February 25. After nine rounds of negotiations, both sides agreed on the 2021 wage negotiation proposal on the 5th.

According to the labor union, the final agreement reached this time does not include the basic raise rate and other demands that the union had requested so far. Initially, the union demanded a basic raise rate of 6.8% and the actualization of hazard pay, but the company maintained its position that it was impossible to raise wages above the agreed standard raise rate of 4.5% or more, which was agreed upon in the existing labor-management council. The union explained, "Considering the prolonged COVID-19 situation and the intensifying external competition in the display market, the union withdrew demands such as the wage increase rate for the company's competitiveness."

However, the company clarified that some parts of the 2021 wage and welfare items previously announced were reflected due to the union's demands and agreed to provide wage-related data for the next wage negotiations to be held in about four months.

With the conclusion of this signing ceremony, Samsung Display's labor union will end the strike that started on the 21st of last month, centered on six union executives. This is the first strike to occur at the company since Samsung Display was founded in 2012. Earlier, the union stated, "After the signing ceremony, the protest tent will be dismantled, and the six striking members will return to work on the 12th."

Samsung Display's labor union was launched under the Federation of Korean Trade Unions last February and currently has about 2,400 members, exceeding 10% of the total employees.

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