Samsung Electronics Initiates Wage Negotiation Process... Labor-Management Meeting Scheduled for Tomorrow

Weekly Negotiations
Union Proposes 10 Million KRW Annual Salary Increase and Other Terms

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

[Asia Economy Reporter Kim Heung-soon] Samsung Electronics labor and management will officially begin the 2021 wage negotiation process starting with a meet-and-greet on the 5th.

According to industry sources and Samsung on the 4th, Samsung Electronics labor and management officials plan to discuss the 2021 wage negotiation procedures and schedule as planned during this meet-and-greet, and then proceed with negotiations about once a week.

Previously, four labor unions within Samsung Electronics under the Korean Federation of Metalworkers' Unions?namely the National Samsung Electronics Union, Samsung Electronics Office Workers' Union, Samsung Electronics Gumi Branch Union, and Samsung Electronics Union?agreed to form a joint negotiation team to engage in the talks. Among these unions, the National Samsung Electronics Union is the largest, with approximately 4,500 members.

Earlier, the unions included in their draft wage negotiation demands a uniform annual salary increase of 10 million KRW for all employees, payment of company stocks (about 1.07 million KRW per person) and COVID-19 incentive bonuses (about 3.5 million KRW per person), and a performance bonus of 25% of annual operating profit.

Samsung Electronics had already decided on a total wage increase of 7.5% this year in March through its in-house autonomous body, the Labor-Management Council. Until now, Samsung Electronics, following its 'no-union management' policy, has set annual wage increase rates through the Labor-Management Council without wage negotiations with unions.

This wage negotiation is the first since Vice Chairman Lee Jae-yong declared last year the abolition of no-union management, drawing keen interest from the business community regarding the process and outcome. Since the establishment of the union at Samsung Electronics in 2018, labor and management have held wage negotiations, but actual agreements have never been reached. Samsung Electronics stated, "We will comply with relevant procedures and engage in sincere dialogue with the unions."

Earlier, in August, Samsung Electronics signed its first-ever collective labor agreement in its 52-year history. At that event, a 'Joint Declaration for Labor-Management Harmony' was also announced to establish a model labor-management culture.

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