Samsung Electronics Union Recruiting Members for Collective Lawsuit on Wage Peak System

"Cutting Wages Without Job Changes Is Unfair"

[Asia Economy Reporter Moon Chaeseok] Samsung Electronics' largest labor union is reportedly pushing for a class-action lawsuit, claiming that the company's wage peak system is unfair. They argue that the current system, which reduces wages without any change in job duties, is unjust.

According to industry sources on the 20th, the National Samsung Electronics Union, which has the largest number of members among Samsung Electronics unions, has been recruiting participants for the wage peak system class-action lawsuit through its website since the 15th. The union has about 6,000 members, accounting for approximately 5% of Samsung Electronics' domestic employees.

The union plans to first recruit plaintiffs mainly from its members and later allow general employees who have not yet joined the union to participate in the lawsuit.

Samsung Electronics introduced the wage peak system in 2014 when it extended the retirement age from 55 to 60. Initially, the system reduced wages by 10% annually starting at age 55, but later the application age was postponed to 57, and the wage reduction rate was eased to 5%.

Earlier, in May, the Supreme Court ruled that a wage peak system that reduces wages solely based on age without reasonable grounds is invalid. The union claims that Samsung Electronics' current wage peak system, which cuts wages without any change in job duties, is unfair.

Samsung Electronics has stated that there is no problem with the system. The union has not provided any specific response.

Meanwhile, Samsung Electronics labor and management plan to discuss improvements to the wage peak system starting at the end of this month through the 'Labor-Management Win-Win Task Force (TF)'.

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