Court to Rule on Management's 'Strike Ban' on the 20th...DX Division Files 'Suspension of Bargaining' Against Union

Second General Strike Looms Over Incentive Dispute
Up to 40 Trillion Won Loss Feared If Strike Begins on the 21st

Yonhap News Agency

Samsung Electronics, which is facing the largest general strike in its history, is expected to reach a critical turning point this week depending on the judiciary's decision.

According to legal sources, the Suwon District Court plans to announce its final decision by the 20th—one day before the announced strike—regarding the 'injunction to prohibit illegal industrial action' that Samsung Electronics has filed. The court recently held a second hearing, focusing on whether the strike is illegal as claimed by management and on the union's rebuttal. Management is said to have emphasized the necessity of granting the injunction, citing the need to prevent wafer contamination and to maintain safety protection facilities due to the nature of semiconductor processes.

Legal experts believe that even if the court sides with management, it will be difficult to completely prevent the strike itself. This is because, except for about 10% of the workforce deemed essential for key operations, the remaining union members could still proceed with the strike. However, if the injunction is granted, the scope for a legal strike by the union would be narrowed, and if the union presses ahead in violation, it could face criminal charges such as obstruction of business and be exposed to significant civil lawsuits for damages, thereby potentially weakening the momentum of the strike.

In addition to the confrontation with management, a legal dispute over 'bargaining rights' within the union is also spreading. On May 15, the 'Samsung Electronics Employee Rights Legal Response Alliance,' consisting of members from the finished product (DX·Device eXperience) division, filed an 'injunction to suspend the 2026 wage and collective bargaining' with the Suwon District Court against the largest union, the Samsung Electronics National Union. This injunction was prompted by dissatisfaction among DX division members who feel excluded from labor-management negotiations and by their challenge to the decision-making process of the National Union, which is centered on the semiconductor (DS·Device Solution) division that currently holds bargaining rights.

The root cause of the extreme labor-management conflict, as Samsung Electronics faces the prospect of its second general strike since its founding, lies in fundamental differences of opinion over the method of incentive payments during a semiconductor boom and securing funds for future investments. The union insists that, to attract top talent, the cap on incentives should be lifted to match competitors and that 15% of annual operating profit should be distributed as incentives and institutionalized. In contrast, management argues, based on Supreme Court precedent, that incentive payments cannot be subject to strikes. Management especially warns that unconditionally accepting the union's demands would make it impossible to secure funds for research and development (R&D) and new business investments needed to prepare for future downturns, given the cyclical nature of the industry, and this could critically undermine the company's future competitiveness. As a result, negotiations remain deadlocked.

If this general strike materializes, it is expected to be the largest ever in terms of participation and potential damage. The union's joint action group estimates that over 50,000 members could join the general strike, which is scheduled to last for 18 days from May 21 to June 7. In particular, the National Union, which includes about 74,000 of the 78,000 DS division employees, is leading the strike, making disruptions to production lines inevitable.

The union claims that, factoring in equipment backup and other considerations, losses could amount to at least 20 trillion won and as much as 30 trillion won. Industry observers also warn that if the semiconductor supply chain—which accounts for about 35% of national exports—is disrupted, the total economic loss could exceed 40 trillion won. However, both labor and management are leaving room for last-minute behind-the-scenes negotiations. Government authorities, including the Ministry of Employment and Labor, are also considering whether to invoke the 'emergency adjustment order,' the most powerful legal measure currently available.

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