Samsung Electronics Replaces Chief Negotiator; Labor-Management Talks Resume (Update)
Samsung Electronics has reopened dialogue by replacing its chief negotiation representative at the union's request.
On the 16th, Choi Seungho, Chairman of the Samsung Electronics Branch of the Ultra-Enterprise Labor Union (hereinafter referred to as the Ultra-Enterprise Union), stated, "The company's chief negotiation representative has been replaced by Yeomyeong-gu, head of the People Team," and added, "However, in order to ensure understanding of the negotiation process, we accepted the company's request to allow Vice President Kim Hyung-ro to participate in the mediation process without making any statements."
Choi Seungho, chairman of the Samsung Electronics branch of the Ultra Enterprise Labor Union, is attending the post-mediation meeting held on the 11th at the Central Labor Relations Commission's First Mediation Room in the Government Sejong Complex and is addressing the press. Photo by Yonhap News Agency
View original imagePreviously, Samsung Electronics had appointed Vice President Kim Hyung-ro of the DS (Device Solution) Division as the chief negotiation representative for the post-adjustment meetings presided over by the Central Labor Commission on May 11–12. However, after the post-adjustment meetings ended without progress and the crisis of a general strike intensified, the company took action in an effort to bring the union back to the negotiating table. The replacement of the negotiation representative was also one of the two conditions the union presented on May 15 for resuming negotiations.
Chairman Choi said, "I was informed that the agenda is not fully prepared yet," adding, "Yeomyeong-gu is coming down, and we are planning to hold a meeting."
He also commented on Chairman Lee Jae-yong of Samsung Electronics’ public apology to the nation. Chairman Choi stated, "Employees joined the union because their trust in the company was broken. In the case of the DS (Device Solution) Division, with an 85% membership rate, virtually all are union members and employees," and continued, "It may take time to restore trust, but I hope that starting with this round of negotiations, efforts will be made so that we can move forward together."
Samsung Electronics Chairman Jay Y. Lee, who rushed back from an overseas business trip, is bowing his head in apology at the Seoul Gimpo Business Aviation Center (SGBAC) on the 16th. Photo by Yonhap News
View original imageChairman Lee, who arrived at Seoul Gimpo Business Aviation Center (SGBAC) in Gangseo-gu, Seoul, on the afternoon of the 16th, said, "I sincerely apologize to our global customers for the anxiety and concern caused by internal issues within our company," and added, "I deeply bow my head in apology to the people of Korea, who always support, love, and even criticize Samsung."
Chairman Lee continued, "Now is a time when we must wisely unite our strength and move forward in one direction," emphasizing, "To the union members, we are all one family. Let us do our best so that we can all be proud to be members of Samsung." This marks the first time Chairman Lee has issued a public apology in an open setting since his inauguration as chairman in October 2022.
Meanwhile, the union is demanding institutionalization of a fixed performance bonus equal to 15% of operating profit and the abolition of the upper limit on bonuses in this round of negotiations. The company, on the other hand, has proposed maintaining the existing system while offering special bonuses without an upper limit, and the gap between the two sides remains unbridged.
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The union plans to launch an 18-day general strike from May 21 to June 7. The union estimates that up to 50,000 members may participate.
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