[Inside Chodong] Samsung Electronics Union's Repeated Strike Threats

"Jeon.Il.Man Grand Operation":
Union Membership Nears 10,000, but Representation Remains Limited
Union Pushes for Official Bargaining Rights Amid Ongoing Wage Disputes
Strike Threat Looms as Labor-Management Tensions Escalate at Samsung Electronics

'Jeon.Il.Man Grand Operation'... 9,803 Members as of May 8

On the homepage of the Samsung Electronics Labor Union nationwide, there is a motivational phrase encouraging the achievement of 10,000 union members. Although more than 120,000 employees work at Samsung Electronics nationwide, the number of union members is less than 10,000. With union membership at only about 8%, it is also evaluated that the union lacks sufficient representation to adequately voice the position of Samsung Electronics workers. To encourage union membership, the Samsung Electronics union has even proposed lowering the monthly union dues from 10,000 won to 500 won.

The Samsung Electronics union, actively working to increase membership, is currently in a tense standoff with management over wage negotiations. Fundamentally, they want to be recognized as an official bargaining body that negotiates with management instead of the labor-management council.

The Samsung Electronics union has raised the possibility of a 'strike' again this year, following last year. They refuse to accept this year's average wage increase rate of 4.1% (base increase rate 2% + performance increase rate 2.1%), which Samsung Electronics officially agreed upon with the labor-management council. The union views the decided wage increase rate as 'meager' and sees the fact that wage negotiations were conducted with the labor-management council rather than the union as a trick by Samsung to maintain a no-union management policy.

Samsung Electronics, which determined the wage increase rate through legal procedures, is taken aback. The labor-management council is a body where employer representatives representing the company and employee representatives participate to discuss wages and working conditions. Samsung Electronics has set the annual wage increase rate through the labor-management council, which lacks union representation. The Samsung Electronics union has requested talks with Chairman Lee Jae-yong and Vice Chairman Jung Hyun-ho and stated that if conflicts are not resolved, they are prepared to strike. If the Samsung Electronics union proceeds with a strike, it would be the 'first' strike since the company's founding in 1969.

The deteriorated labor-management relations at Samsung Electronics, to the extent that a strike is even mentioned, are not just a matter of this year. Since Chairman Lee promised to abandon the no-union management policy in May 2020, the union's voice has grown stronger. Especially since last year, the risk of strikes has increased. In April last year, Samsung Electronics agreed with the labor-management council on an average wage increase rate of 9%, but the union pulled out the strike card for the same reason as now?that the increase rate was too low. Eventually, the strike risk disappeared only after August when additional welfare benefits were secured, such as increasing the number of days for the 'holiday consideration pay' given to employees working during the holiday period (from 3 to 4 days) and compensating unused 'recharge leave' of 3 days with annual leave pay.

For the time being, the union's voice is expected to continue to rise. The atmosphere suggests that negotiations for additional pay or leave and formal wage agreements with management are necessary to calm the situation. However, unlike last year when the union secured additional welfare benefits through struggle, this year Samsung Electronics' business situation is not favorable, which is a point the union needs to reconsider. Samsung Electronics' operating profit in the first quarter of this year was only 640.2 billion won, a 95% plunge compared to the same period last year due to the collapse of the semiconductor market. There are bleak forecasts that the second quarter will be around 280 billion won, far below the first quarter level.

The Samsung Electronics union stated on its homepage regarding the reason for establishing the union that it is 'not about asking for higher wages.' They asked to see each employee as a person, and to respect, communicate, and negotiate. If this continues, resolving labor-management conflicts might actually be easier. It is a matter of striving to solve communication breakdowns and disconnections through dialogue between labor and management. Of course, the dialogue must consider the company's business situation. It is time to join forces to improve management rather than wasting energy on labor-management conflicts.

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