Samsung Electronics Union Begins Labor Dispute Mediation Request... First Strike Possible in 53 Years

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[Image source=Yonhap News]

[Asia Economy Reporter Lee Hye-young] The Samsung Electronics labor union has ultimately filed a labor dispute mediation request with the Ministry of Employment and Labor. If the labor and management, who have been engaged in a tug-of-war over the wage negotiation proposal, fail to find a consensus even through mediation, the company could face its first strike in its 53-year history.

The Samsung Electronics Labor Union Joint Negotiation Team announced on the 4th that it had completed the labor dispute mediation application to the Central Labor Relations Commission (CLRC) of the Ministry of Employment and Labor. Accordingly, the CLRC will form a mediation committee composed of employer members, employee members, and public interest members to begin the mediation process.

The mediation committee will attempt to mediate between both labor and management for 10 days, and if either side requests an extension within 10 or 15 days, the mediation period may be extended further. If both parties accept the mediation proposal presented by the CLRC, the mediation will be established; however, if either side rejects it, the mediation will fail. In such a case, the union will legally obtain the right to engage in collective action.

Given the union’s recent declaration of a ‘hardline response,’ the possibility of a strike is gaining weight. If the union’s warning materializes, it will be Samsung Electronics’ first strike in its 53-year history.

A union official stated, "Considering the overwhelming opposition (90.7% against) from union members to the wage negotiation proposal and the company’s attitude of showing no willingness to negotiate, applying for mediation was unavoidable," adding, "If mediation fails, we are considering escalating our response up to a strike."

The Samsung Electronics Labor Union Joint Negotiation Team consists of the Samsung Electronics Office Workers’ Union, Samsung Electronics Gumi Branch Union, Samsung Electronics Union Donghaeng, and the National Samsung Electronics Union. Among them, the largest, the National Samsung Electronics Union under the Korean Federation of Metalworkers’ Unions, held a meeting at its Gwangju branch the day before to discuss the mediation application procedure and future directions and levels of collective action. The National Samsung Electronics Union is known to have around 5,000 members and currently has an emergency response committee formed. The committee reportedly has solidified its stance to not rule out a strike, criticizing the company’s passive response.

Previously, the union demanded from management ▲a uniform 10 million KRW annual salary increase for all employees ▲a 25% performance bonus based on annual operating profit ▲disclosure of the performance bonus payment system. However, the company reportedly expressed reluctance, stating that additional increases beyond the existing wage increase agreed upon in the labor-management council negotiation in March last year (a total of 7.5% increase: 4.5% base increase + 3% performance increase) would be difficult.

Instead, the company’s final wage negotiation proposal delivered to the joint negotiation team included a plan to support a union development fund of 30 million KRW and to discuss improvements to the wage peak system and employee rest rights within a labor-management win-win consultative body.

The union put this proposal to a final vote, but it was rejected with 90.7% opposition. After signing the first labor-management collective agreement in the company’s 52-year history in August last year and conducting wage negotiations since October of the same year, with a total of 15 negotiation sessions, the wage negotiations have returned to square one due to the rejection in the final vote.

Even if the union proceeds with a strike, it is expected to involve about 4% of the total approximately 110,000 employees, so there is unlikely to be a significant impact on product production or overall operations. In the case of semiconductor facilities, most are equipped with automated systems, so production disruptions are not expected.

However, if union issues persist, it is inevitable that corporate management will be affected. The Samsung Compliance Committee, which is transitioning to its second term, is also closely monitoring the current situation. A Compliance Committee official said, "Currently, it appears that both the union and the company are following their respective procedures," adding, "We are observing the matter."

Samsung Electronics stated, "We continue to keep the door open for negotiations," and "We plan to respond sincerely according to the procedures."

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