"4.1% is unacceptable... Samsung Electronics Union 'Wage Negotiation Breakdown, Request for Dispute Mediation'"

Labor-Management Council Proposes 4.1% Average Wage Increase This Year
Union Demands "At Least 6%" - Stalemate
If Central Labor Relations Commission Mediation Fails, Workers Secure Right to Strike

The Samsung Electronics labor union announced on the 21st that it has declared a breakdown in this year's wage negotiations and will apply for labor dispute mediation at the Central Labor Relations Commission.

The National Samsung Electronics Union stated in its negotiation declaration on the same day, "Since the initial meeting in December last year, we held 18 main negotiation sessions and 2 representative negotiation sessions over about five months, but the negotiations ultimately broke down." The union said, "Although the company earned 43 trillion won in operating profit last year, the management ignored all 50 union proposals, repeatedly claiming that the business environment is difficult," adding, "We cannot help but be outraged at the management's stance of viewing union members and employees merely as 'simple consumables' and 'cost reduction factors.'

On January 6th, employees are moving inside the Samsung Electronics Seocho Building in Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

When the Central Labor Relations Commission receives an application for labor dispute mediation, it forms a mediation committee consisting of employer members, worker members, and public interest members, and presents mediation proposals to both labor and management for ten days. If neither side accepts the commission's mediation proposal, the commission decides to suspend mediation. If either side rejects it, the mediation fails. In this case, the union secures the right to strike through a vote of its members. Last year, the union also applied for dispute mediation after wage negotiations broke down and secured the right to strike. However, an actual strike did not occur. If a strike happens, it would be the first case since the company's founding in 1969. A Samsung Electronics official said, "We will sincerely participate in the mediation process."

Earlier, on the 14th, Samsung Electronics posted on the internal bulletin board that it had agreed with the labor-management council to set this year's average wage increase rate at 4.1%. They introduced a new "mid-month day off" system that exempts employees from the obligation to come to work once a month if they meet the required monthly working hours, and improved welfare systems such as reduced working hours for pregnant employees and those under the wage peak system. The plan to raise the remuneration cap for registered executives by 17.1%, which had been controversial due to the large gap compared to employee salaries, was also put on hold. The labor-management council is a body where employer and worker representatives negotiate working conditions such as wages. It has served as a channel for determining the annual wage increase rate. Worker representatives are elected by employee votes.

Separately from the labor-management council, a joint union negotiation group consisting of four unions?the Samsung Electronics Office Workers' Union, Samsung Electronics Gumi Labor Union, Samsung Electronics Union "Donghaeng," and the National Samsung Electronics Union?requests a minimum wage increase rate of 6% or more or compensation in a lump sum. They also demand the withdrawal of the fixed overtime allowance of 17.7 hours. Since the initial meeting in December last year, the negotiation group has held 20 negotiation sessions with management until the 18th but failed to narrow the gap in positions. The National Samsung Electronics Union, the largest among Samsung Electronics unions, has about 9,000 members, accounting for approximately 7.4% of the total 121,000 employees.

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