Samsung Electronics Union Secures Right to Strike... Growing Concerns Over Company's First Ever 'Strike'

Published 14 Feb.2022 16:23(KST)

Updated 03 Mar.2023 14:52(KST)

The Central Labor Relations Commission Decides to 'Suspend Mediation' on the 14th Afternoon After Failing to Narrow Differences in the Second Adjustment Statement Between Both Sides

Samsung Electronics union representatives are attending the 2nd mediation meeting of the Central Labor Relations Commission for Samsung Electronics labor-management wage negotiations held in the morning of the 14th in Sejong City.
[Image source=Yonhap News]

[Asia Economy Reporter Lee Hye-young] The Samsung Electronics labor union's possibility of initiating collective actions, including the company's first-ever strike, has significantly increased.

On the afternoon of the 14th, the Central Labor Relations Commission of the Ministry of Employment and Labor decided to suspend mediation after failing to narrow the gap between labor and management during the second mediation meeting held since the morning.

A representative of the National Samsung Electronics Labor Union said, "At 3:25 p.m. today, the decision to suspend mediation was made at the full meeting of the second mediation session of the Central Labor Relations Commission."

Mediation suspension is decided when either labor or management rejects the mediation proposal presented by the commission or when the gap between the two sides is considerable. With the commission's decision to suspend mediation, the union secures legal rights to strike and can proceed with collective actions such as a strike.

With the strike rights secured today, the union plans to conduct a member vote to determine the specific form of collective action. According to the Labor Union and Labor Relations Adjustment Act (Labor Union Act), union collective actions must be decided by a majority vote of union members through a direct, secret, and anonymous ballot.

If the union decides to strike, it will be the first strike in Samsung Electronics' 53-year history. Industry insiders expect the impact of a strike by the Samsung Electronics union to be limited. According to the union, there are about 4,800 union members, which is approximately 4% of the total employees (about 110,000).

Meanwhile, the union has demanded from management a uniform annual salary increase of 10 million KRW for all employees, a performance bonus of 25% of annual operating profit, and guaranteed rest rights. On the other hand, the company has expressed reluctance, stating that additional increases beyond the existing wage raise (totaling 7.5%) agreed upon in the labor-management council composed of employee representatives in March last year are difficult.

Samsung Electronics labor and management have conducted 15 rounds of wage negotiations for 2021 since September last year. After the company's final proposal was rejected in the union vote in January and the gap remained unresolved, the union filed a labor dispute mediation request with the Central Labor Relations Commission on the 4th to secure strike rights.

Both sides failed to narrow their differences during the first mediation meeting held on the 11th, and with the mediation period ending today, they remain at an impasse, entering another tug-of-war over whether the first-ever strike will occur.