Six Economic Organizations Urge Withdrawal of Samsung Electronics Strike Plan...Warn of National Loss of Opportunity

"Emergency Mediation Measures Must Be Immediately Invoked in the Event of a Strike"

The business community has urged Samsung Electronics' labor union to withdraw its strike plans and resolve issues through dialogue.

On May 18, the six major economic organizations—including the Korea Employers Federation, Korea Chamber of Commerce and Industry, Federation of Korean Industries, Korea International Trade Association, Korea Federation of SMEs, and Korea Federation of Middle Market Enterprises—issued a joint statement titled "Joint Statement by Six Economic Organizations on the Withdrawal of Samsung Electronics Union's Strike Plan and Mutual Cooperation."

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The business sector expressed its concerns, stating, "Despite the efforts of the government and the Central Labor Relations Commission, the union continues to adhere to its original position and is still forecasting a strike. We are deeply concerned about this situation."

Labor and management at Samsung Electronics are scheduled to resume negotiations on this day, with government mediation, ahead of the general strike planned for the 21st. Both parties will attend the second post-mediation meeting at 10 a.m. at the Central Labor Relations Commission located in the Sejong Government Complex.

The six economic organizations warned, "A large-scale strike at such a critical time risks not only a simple labor-management conflict, but could also result in a significant national loss of opportunity. If the strike proceeds, production disruptions could cause enormous damage such as eroding trust in global supply chains, customer attrition, and a decline in the national credit rating."

They further explained, "Given that 24-hour continuous operation is essential to semiconductor manufacturing processes, a strike that shuts down production lines could result in mass wafer disposal and equipment damage, as well as the risk of major safety accidents such as chemical leaks."

Additionally, they stressed the need to recognize the potential collapse of the broader industrial ecosystem, including small and medium-sized partner companies. "The damage from a general strike would not be limited to within the company; thousands of small and medium-sized suppliers and their workers, as well as the entire semiconductor materials, components, and equipment industry, could be severely impacted," they pointed out.

They added, "Partner companies already struggling with high inflation, high interest rates, and economic slowdown could face a cascade of operational shutdowns and employment instability if production disruptions become a reality. Disruptions in semiconductor supply would further destabilize the global electronics industry's component supply chain, weakening its overall market competitiveness."

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The business community also stated, "The performance-based bonuses currently demanded by the union are a claim on the distribution of company profits. The courts have already ruled that these are not wages, and this issue is a matter of management decision rather than an appropriate subject of collective bargaining. There are virtually no cases among global companies where a pre-arranged share of operating profit is contractually distributed to employees. How operating profits are used is generally a decision for the board of directors to make."

They emphasized, "Excessive demands for performance-based bonuses by the union will only deepen the dual structure of the labor market and amplify social discord."

Finally, the business community requested, "Because a strike by the union would place a heavy burden on the national economy as a whole, if a strike does occur, it is imperative to immediately invoke the emergency mediation authority."

The business sector concluded, "The government must do its utmost to support labor and management in resolving issues through dialogue. In the event of a strike, the emergency mediation authority should be invoked immediately to prevent the national economy and the industrial ecosystem from suffering irreversible damage."

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