Samsung Electronics Abruptly Replaces Chief Negotiator... Labor Talks to Resume on the 18th (Comprehensive)

Dialogue Resumes Between Labor and Management Just Five Days Before General Strike
Pivotal Additional Negotiations Set for May 18

Samsung Electronics has reopened lines of communication by abruptly replacing its chief negotiator representing management. With the nationwide strike announced by the labor union just five days away, the additional round of negotiations between Samsung Electronics management and the union, scheduled for May 18, is expected to become a critical turning point.

On May 16, Choi Seungho, head of the Super-Enterprise Labor Union’s Samsung Electronics branch (hereafter referred to as the Super-Enterprise Union), announced, "The management's chief negotiator has been replaced with Yeomyeong Koo, the head of the People Team." He added, "However, we accepted the company's request that Vice President Kim Hyeongro also participate in the negotiations, but only as an observer to aid his understanding of the process, without making any statements."

Chairman Choi Seung-ho, who completed the hearing on the injunction application to prohibit illegal labor disputes. Photo by Yonhap News.

Previously, Samsung Electronics had appointed Vice President Kim Hyeongro of the DS Division as chief negotiator at the post-mediation meetings hosted by the Central Labor Relations Commission on May 11 and 12. However, as those negotiations ended without results and the threat of a general strike escalated, the company took steps to bring the union back to the bargaining table. The replacement of the negotiating representative was also one of two conditions set by the union on May 15 for resuming talks.

Choi stated, "I was informed that not all agenda items are ready yet," and added, "Yeomyeong Koo is on his way, and a meeting will be held." He explained that this meeting is more of a preliminary discussion, while official negotiations will resume at the Central Labor Relations Commission on May 18. Although the exact time has not been confirmed, 10 a.m. is seen as the most likely. Notably, the chairman of the Central Labor Relations Commission is expected to directly oversee the mediation at this session.

Choi also commented on Chairman Jay Y. Lee's public apology to the nation. He said, "Employees joined the union because their trust in the company was broken. In the DS (Device Solutions) Division, with 85% membership, virtually all employees are now union members." He added, "It may take time to restore trust, but I hope efforts will be made from this round of negotiations so that we can move forward together."

Samsung Electronics Chairman Jay Y. Lee, returning from an overseas business trip, is reading a statement at the Seoul Gimpo Business Aviation Center (SGBAC) on the 16th. Photo by Yonhap News Agency

On the afternoon of May 16, after returning to Korea through the Seoul Gimpo Business Aviation Center (SGBAC) in Gangseo-gu, Seoul, Chairman Jay Y. Lee stated, "I sincerely apologize to all our customers around the world for the anxiety and concern caused by our internal company issues," and continued, "I bow my head in apology to the people of Korea, who always support, love, and hold Samsung accountable."

He went on to say, "Now is the time for us to wisely unite and move forward as one. To all members of the union, we are all one family. Let us do our utmost so that we can be proud to call ourselves Samsung people." This marks the first time since his inauguration as chairman in October 2022 that Jay Y. Lee has issued a public apology in front of the media.

Meanwhile, the union is demanding the institutionalization of fixed performance bonuses equivalent to 15% of operating profit, along with the removal of any caps. The management, on the other hand, has proposed maintaining the current system while offering unlimited special bonuses, resulting in an ongoing deadlock.

If negotiations fail to progress, the union plans to launch an 18-day general strike from May 21 to July 7, with up to 50,000 union members expected to participate. Should the Suwon District Court grant Samsung Electronics' application for an injunction to prohibit illegal strike actions, essential personnel for safety and wafer management would be excluded from the strike. However, forecasts suggest that damages could still amount to between 10 trillion and 20 trillion won. Given that it would take at least a month to fully restore operations after the strike ends, some estimate that total losses could reach a staggering 100 trillion won.

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