Samsung Electronics Signs First Ever Labor-Management Collective Agreement... "Expecting Communication and Cooperation" (Comprehensive)

95 Provisions Including Union Guarantees
Joint Declaration for Labor-Management Harmony Also Announced

Choi Wan-woo, Vice President and Head of HR Team at Samsung Electronics DS Division; Kim Seong-hoon, Chairman of Samsung Electronics Labor Union; Kim Hyun-seok, CEO; Jin Yoon-seok, Chairman of the National Samsung Electronics Labor Union; Kim Man-jae, Chairman of the Korean Metal Workers' Federation; Lee Jae-shin, Chairman of Samsung Electronics Gumi Branch Labor Union; and Kim Hang-yeol, Chairman of Samsung Electronics Office Workers' Labor Union (from left) are posing for a commemorative photo after signing the collective agreement at the collective agreement signing ceremony held on the 12th at Samsung Electronics Giheung Campus Nanopark in Yongin, Gyeonggi Province.
[Photo by Samsung Electronics]

[Asia Economy Reporter Kim Heung-soon] Samsung Electronics labor and management signed a collective agreement for the first time in the company's history on the 12th. With major affiliates such as Samsung SDI also signing collective agreements ahead of Vice Chairman Lee Jae-yong's parole, momentum is building to fulfill Lee's public promise made last May to establish a healthy labor-management culture at Samsung.

On the afternoon of the same day, Samsung Electronics labor and management signed the collective agreement for the first time at the Nano Park on the Giheung Campus in Yongin, Gyeonggi Province. Attendees included CEO Kim Hyun-seok and representatives from four unions: the Samsung Electronics Office Workers' Union, Samsung Electronics Gumi Branch Labor Union, and Samsung Electronics Labor Union, among others.

A collective agreement is a pact reached through collective bargaining between labor and management regarding working conditions and other related matters. 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 for union officials, procedures for handling industrial accidents, and improvements to personnel systems.

Samsung Electronics and the joint union bargaining group also issued a "Joint Declaration of Labor-Management Harmony" to build a cooperative labor-management relationship and pledged to work together to establish a model labor-management culture.

CEO Kim Hyun-seok said, "Today is a meaningful day as Samsung Electronics signs its first collective agreement," adding, "We hope that labor and management will continue to communicate and cooperate sincerely to envision a progressive future together."

Labor and management began negotiations with a first formal 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 unions completed ratification procedures including member voting. The largest union, the National Samsung Electronics Union, ratified the agreement with 96% approval from its members.

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 reached their first collective agreement is seen as highly significant. A business insider commented, "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 promises into full practice. Given the sharp opposition to his parole, it appears they will focus on implementing these promises to mitigate 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 on 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 diverse opinions for fostering a healthy labor-management culture.

Since then, among five Samsung Electronics affiliates, Samsung Display labor and management were the first to sign a collective agreement in January this year, followed by Samsung SDI labor and management, who concluded their agreement on the 10th after negotiations starting in September last year. Based on the collective agreement signed 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.