General Strike D-1: Final Negotiations Between Samsung Electronics Labor and Management Over One Key Issue

Central Labor Relations Commission Resumes Third Day of Second Post-Mediation on May 20
Chairperson Park Soogeun: "Management Finalizing Its Position"
General Strike to Be Averted If Union Members Approve Agreement in Vote

On the eve of the scheduled general strike at Samsung Electronics, labor and management are engaging in what is effectively their final round of negotiations. The second post-mediation session by the Central Labor Relations Commission, which began on May 18, was unable to reach a conclusion even the following day. Observers assess that the latest difficulties stem more from a postponement of the final decision rather than a complete breakdown. While the two parties remain at odds over one key issue, management is currently finalizing its position. If a labor-management agreement is reached and union members approve it through a vote, the immediate crisis of a general strike will be averted.

Yonhap News Agency

On May 20, the Central Labor Relations Commission will resume the second post-mediation session for Samsung Electronics at the Government Complex Sejong in the morning. The second meeting, which began on May 18, ended without a conclusion at approximately 12:30 a.m. on May 20. After the resumed session on the previous morning lasted for over 14 hours and extended past midnight, the Commission adjourned the meeting and decided to reconvene for a third session.

The key point is whether labor and management will accept the mediation proposal from the Central Labor Relations Commission. Park Sukeun, Chair of the Commission, stated, "One important issue has not been settled," adding, "The management has agreed to finalize its position and present it."

During the current negotiations, labor and management have been in a standoff until the very end over several issues: abolishing the cap on performance bonuses, which is set at 50% of annual salary; the allocation ratio for the performance bonus fund; and institutionalizing the agreed terms. In particular, differences remain regarding the distribution structure of the performance bonus fund.

If management accepts the alternative proposal put forth by the Commission, the immediate risk of the general strike scheduled for May 21 will likely be averted. However, in this case, the union will need to hold a vote among its members to ratify the tentative agreement, and if the proposal is rejected, the general strike could begin as early as May 21.

The meeting is highly likely to conclude in the morning. This is because additional time will be needed to proceed with subsequent steps such as the union vote. If the vote is not completed by the end of May 20, it is possible that the union may postpone the strike. Since an agreement has been reached, the strike schedule may be delayed to allow time for the vote to be conducted.

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