Strike crisis easing? Samsung Electronics "Accepts union's request for CEO dialogue"

CEO to Personally Engage in Dialogue with Union... "Participants and Schedule to Be Coordinated"

The Samsung flag is fluttering in the wind in front of the Samsung Electronics Seocho building. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Lee Hye-young] Samsung Electronics, facing its first strike threat since its founding due to a breakdown in wage negotiations, has agreed to the union's demands, with the CEO set to engage in direct talks.

According to Samsung Electronics labor-management relations on the 25th, the company sent an official letter to the union on the same day expressing its willingness to accept the union's request for dialogue.

The company stated, "We intend to proceed with the requested dialogue with the CEO by the joint bargaining group to establish continuous communication and trust in labor-management relations."

Currently, Samsung Electronics' CEO is Vice Chairman Han Jong-hee, head of the Device Experience (DX) division. President Kyung Kye-hyun, head of the Device Solutions (DS) division, is expected to be appointed CEO after being elected as an inside director at the regular shareholders' meeting on the 16th of next month.

Since Vice Chairman Han will be traveling to Barcelona, Spain, to attend the 'Mobile World Congress (MWC) 2022,' which opens on the 27th, if the meeting does not take place within a few days, it is likely to be postponed until March.

A Samsung Electronics official said, "The participants and specific schedule for the meeting are undecided, and further consultations with the union will take place."

The joint bargaining group formed by the four unions within Samsung Electronics issued a statement on the same day, welcoming "the company's change in attitude in response to our demand for direct talks with the CEO."

The union plans to discuss two key demands from the 44 items in the 2021 wage and welfare negotiation proposals?'improvement of the wage system' and 'guarantee of rest rights'?with the CEO.

Regarding the wage system, the union intends to request the company to change the performance bonus payment criteria from the current EVA (Economic Value Added) to operating profit, abolish the comprehensive wage system and wage peak system, and increase the basic salary as a fixed amount. Concerning rest rights, they plan to demand an additional five paid holidays and the conversion of the company founding day and union founding day each into paid holidays.

The union emphasized, "Whether the meeting with the CEO marks the beginning of new dialogue or leads to greater struggles depends entirely on the company's attitude," adding, "We will do our best to ensure good results for both labor and management through this meeting."

Samsung Electronics labor and management have conducted 15 rounds of negotiations since October last year over wage talks but failed to narrow their differences, resulting in a breakdown of negotiations. Following the Central Labor Relations Commission's earlier decision to 'suspend mediation,' the union will secure the right to engage in legal dispute actions such as strikes after a member vote. If the union ultimately decides on a strike as a form of dispute, it will be the first strike in Samsung Electronics' 53-year history since its founding in 1969.

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