Samsung Electronics, First Ever Labor-Management Collective Agreement Established

Agreement Signed Today in Giheung
95 Clauses Including Union Guarantees
Declaration of Mutual Cooperation Also Adopted

Samsung Electronics Seocho Building, Seocho-gu, Seoul [Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] Samsung Electronics labor and management will establish a collective agreement for the first time since its founding on the 12th. With the parole of Vice Chairman Lee Jae-yong imminent, major affiliates such as Samsung SDI are also signing collective agreements, accelerating the fulfillment of Vice Chairman Lee's public promise made last May to establish a healthy labor-management culture at Samsung.

On the afternoon of the 12th, Samsung Electronics labor and management will sign the collective agreement for the first time at the Nano Park in Giheung Campus, Yongin-si, Gyeonggi Province, with the attendance of CEO Kim Hyun-seok from the management side and representatives of the joint bargaining group from four unions, including the National Samsung Electronics Union under the Korean Metal Workers' Union.

A collective agreement is an agreement reached through collective bargaining between labor and management on various working conditions. According to the Labor Union Act, it is the highest workplace autonomous regulation that takes precedence over employment rules or individual labor contracts. The collective agreement agreed upon by Samsung Electronics labor and management consists of 95 articles, including provisions guaranteeing union offices, a time-off system exempting union full-time workers from working hours, procedures for handling industrial accidents, and improvements to personnel systems.

Labor and management began negotiations with a first meeting in November last year and held over 30 negotiation sessions over the past nine months. They reached a tentative agreement on the collective agreement at the end of last month, and the union went through ratification procedures such as member voting. The largest union, the National Samsung Electronics Union, ratified the collective agreement with 96% approval from its members. Along with the signing of the collective agreement on this day, labor and management will also adopt a declaration of harmony pledging a win-win relationship.

Acceleration of Public Promise Fulfillment Ahead of Vice Chairman Lee Jae-yong's Parole

As Vice Chairman Lee, currently imprisoned, is set to be released on parole on the 13th, the fact that Samsung Electronics labor and management have led the way in establishing a collective agreement is considered highly significant. A business insider said, "Vice Chairman Lee previously made internal and external declarations to break away from the negative perceptions surrounding Samsung by mentioning compliance management and the abolition of no-union management, and this symbolizes the start of putting those into full practice. Given the sharply divided public opinion against the parole, it is expected that they will focus on implementing these promises to offset criticism."

Guaranteeing union activities and establishing a healthy labor-management culture at Samsung were key pledges made by Vice Chairman Lee at a public press conference last May. At that time, he emphasized, "I will ensure that the phrase 'no-union management' is no longer associated with Samsung," and added, "We will strictly comply with labor relations laws and firmly guarantee the three labor rights to promote harmony and coexistence between labor and management."

He also conducted external special lectures aimed at establishing desirable labor-management relations for Samsung executives and heads of personnel teams at affiliates. Seven affiliates, including Samsung Electronics, established a 'Labor-Management Relations Advisory Group' composed of external experts under the board of directors to gather various opinions for establishing a healthy labor-management culture.

Since then, among the five Samsung Electronics affiliates, Samsung Display labor and management first signed a collective agreement in January this year, and Samsung SDI labor and management also completed their collective agreement on the 10th after negotiations starting in September last year, showing signs of change. Based on the signing of the collective agreement on this day, Samsung Electronics labor and management plan to soon begin wage negotiations for 2021.

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