'On the Eve of Strike' at Samsung Electronics... Jeon Younghyun and Roh Taemoon: "We Must Prevent Loss of Future Competitiveness" (Comprehensive)

Samsung Electronics' Top Executives Speak Out Amid Bonus Dispute
Labor Authorities Propose Post-Mediation to Labor and Management
Union Joint Struggle Headquarters Faces Surfacing "Labor-Labor" Conflict

With just two weeks remaining until the general strike announced by the Samsung Electronics labor union in May, company management and labor authorities have begun taking steps to prevent a potential crisis. While management has urged employees not to undermine the company's future competitiveness, labor authorities are actively working to initiate post-mediation efforts to keep the channels of dialogue open between labor and management. Meanwhile, internal strife over performance-based bonuses concentrated in the semiconductor division—a "union-versus-union" conflict—has begun to erode the momentum for the general strike.

◆Management: "We Must Prevent Loss of Future Competitiveness"… Labor Authorities Begin Mediation Efforts

According to industry sources on May 8, Younghyun Jeon, Vice Chairman and CEO of Samsung Electronics and Head of the Device Solutions (DS) division, along with Taeman Noh, President and CEO and Head of the Device Experience (DX) division, addressed employees via the company’s internal bulletin board the previous day regarding the progress of wage negotiations.

Vice Chairman Jeon and President Noh stated, "Since December of last year, the company has been engaged in negotiations with the labor union joint bargaining group for the 2026 wage agreement," adding, "We have proposed alternatives after comprehensively considering future competitiveness and business operational conditions, and we have sought to broaden mutual understanding through dialogue with the union."

Younghyun Jeon, Vice Chairman and CEO of Samsung Electronics as well as head of the Device Solutions (DS) division (left), and Taeman Noh, President and CEO and head of the Device Experience (DX) division. Samsung Electronics

The two executives expressed regret over the lack of a final agreement, saying, "We regret that labor and management have yet to reach a final agreement," and appealed, "We will continue discussions with an open attitude and strive to find a direction that resonates with all employees."

Management once again emphasized its determination to prevent the unprecedented situation of a general strike. They said, "In this challenging global business environment, all of us in management, including ourselves, will act responsibly to ensure we do not lose our future competitiveness," and further stressed, "We ask all employees to do their best in their respective roles so that our future competitiveness is not compromised."

This message appears to reflect management's direct commitment to resolving the conflict as concerns grow ahead of the general strike announced by the Samsung Electronics labor union for May 21. The semiconductor industry operates around the clock, and if the union proceeds with the general strike as planned from May 21 to June 7—a total of 18 days—analysts predict losses could reach as much as 20 trillion to 30 trillion won.

On the 23rd of last month, union members raised placards and shouted slogans at the Samsung Electronics Labor Union Joint Struggle Headquarters rally held in front of Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province. Samsung Electronics Labor Union Joint Struggle Headquarters

Recognizing the severity of the situation, labor authorities have also stepped up their mediation efforts. According to the Ministry of Employment and Labor, Kim Dohyeong, Head of the Gyeonggi Regional Employment and Labor Office overseeing Samsung Electronics, is scheduled to meet with Choi Seungho, Chairman of the Samsung Electronics Branch of the Federation of Korean Trade Unions, on this day. The Central Labor Relations Commission has also approached both labor and management at Samsung Electronics to participate in post-mediation procedures. Previously, labor-management conflict over performance-based bonuses at Samsung Electronics led to a breakdown in mediation in March, but if both sides agree to post-mediation, negotiation tables may be set up again.

During intensive wage negotiations for 2026, which began on March 26, management proposed exceeding the cap on outperformance incentives (OPI) through special rewards if the DS division achieved the number one position in sales and operating profit in the domestic industry. However, the union insisted on permanently abolishing the cap through changes to the system, and the two sides failed to narrow their differences.

National Samsung Electronics Union: "Chairman Choi Seungho Made Threatening Remarks"… 'DX Bargaining Exclusion' Deepens Union-Union Conflict

In fact, "union-versus-union" conflict has surfaced within the Samsung Electronics Labor Union Joint Struggle Headquarters. Recently, Donghaeng, another Samsung Electronics labor union, withdrew en masse from the Joint Struggle Headquarters in protest against the Federation of Korean Trade Unions’ push for performance-based bonuses concentrated in the semiconductor (DS) division. While 70% of Donghaeng’s members belong to the DX division, which handles appliances, smartphones, and TVs, about 80% of the members of the Federation of Korean Trade Unions, which recently secured majority union status, are from the DS division.

On the 23rd of last month, Choi Seungho, Chairman of the Samsung Branch of the Federation of Korean Trade Unions, is giving a speech at the Samsung Electronics Union Joint Struggle Headquarters' rally held in front of Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province. Joint Struggle Headquarters

The National Samsung Electronics Labor Union (NSEU) also joined the criticism, sending an official letter the previous day to Choi Seungho, Chairman of the Federation of Korean Trade Unions, titled "Statement of Regret and Request for Apology Regarding Threatening Remarks of Bargaining Exclusion Related to Members’ Opinion-Gathering Activities." The NSEU pointed out in the letter, "Chairman Choi made remarks to the effect that he would exclude DX division employees from bargaining if they engaged in opinion-gathering activities," adding, "This is not simply a personal attack, but an act of erasing the voices of DX division union members from the bargaining table."

Lee Hong, Professor Emeritus of Business Administration at Kwangwoon University, commented, "It is against the theory of fairness to discriminate within the same company simply because the divisions are different," and added, "The union’s demands are akin to a 'prior dividend,' which infringes on shareholders’ residual claims and essentially turns the union into a quasi-shareholder."

Meanwhile, the Federation of Korean Trade Unions has completely denied allegations of intentionally excluding specific unions or blocking bargaining information, stating, "We will faithfully uphold the duty of fair representation in future bargaining processes and work sincerely to ensure negotiations are held to protect the rights and interests of all union members."

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