Samsung Electronics Labor-Management Talks End Without Agreement... Central Labor Relations Commission: "Negotiations Resume at 10 a.m. Today" (Comprehensive)

Samsung Electronics labor and management continued their negotiations over performance-based bonuses past midnight but ultimately failed to reach an agreement. Even with a general strike just one day away, both sides remain locked in a last-minute tug-of-war over key issues.

On May 20, the Central Labor Relations Commission announced, "The meeting between Samsung Electronics labor and management was adjourned at 12:30 a.m., and negotiations will resume at 10:00 a.m. today."

The commission held the second day of the second post-adjustment meeting between Samsung Electronics labor and management at the Government Complex Sejong from 10:00 a.m. the previous day. The meeting was held behind closed doors, and as negotiations dragged on past midnight into May 20, the session was officially changed to a third meeting.

Choi Seungho, chairman of the Samsung Group Supra-Enterprise Labor Union Samsung Electronics Branch, attended the second day of the second post-adjustment meeting held at the Central Labor Relations Commission at the Government Complex Sejong on the 19th, two days before the announced general strike. Photo by Yonhap News Agency

The second day of negotiations continued for more than 14 hours since the previous day. Previously, Park Sugeun, Chairman of the Central Labor Relations Commission, had expected that a decision would be reached regarding an agreement or the presentation of a mediation proposal by around 10:00 p.m., but no agreement was reached even past midnight.

Chairman Park stated during a briefing in the afternoon that "both sides are making concessions," but also noted, "the most important one or two issues remain unresolved." According to industry sources, the main points of contention are the proposal to allocate 15% of operating profit as the performance-based bonus pool and the removal of the performance bonus cap.

It is reported that the gap in positions regarding the distribution ratio of the bonus pool also remains. The union is demanding that 15% of operating profit be used as the bonus pool for the Device Solutions (DS) division and distributed as '70% to the division, 30% to the business unit.' In contrast, management is proposing a '40% to the division, 60% to the business unit' split, citing concerns over undermining the principle of performance-based rewards.

Park Sugeun, Chairman of the Central Labor Commission, is leaving the negotiation room after the first day of the second post-adjustment meeting held on the 18th at the Central Labor Commission in the Government Complex Sejong. Photo by Yonhap News.

Chairman Park also stated that the possibility of a voluntary agreement between labor and management is still open. He said, "Instead of presenting a mediation proposal, there is a possibility of reaching an agreement," and suggested, "It may be better not to draft a mediation proposal at this stage."

However, if the gap in positions is not further narrowed, the Central Labor Relations Commission is likely to present a mediation proposal. The commission's proposal is a final plan that compromises between the demands of labor and management, and if both sides accept it, it holds the same legal effect as a collective agreement.

After adjourning the meeting, Chairman Park said, "Management will finalize their position and submit it by 10:00 a.m." and added, "The post-adjustment process will conclude in the morning." Choi Seungho, Chairman of the Samsung Group Supra-Enterprise Labor Union Samsung Electronics Branch, stated, "We have decided to wait at the commission to participate in the post-adjustment meeting." When asked about the specific points of disagreement, he remained silent. Chairman Park and other commission officials also left without further explanation.

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