Central Labor Relations Commission: "Significant Labor-Management Differences at Samsung Electronics"... Final Mediation Proposal Fails

The post-mediation procedure between Samsung Electronics and its labor union has ultimately ended without an agreement. The process concluded after the two sides failed to narrow their differences and the labor union requested a halt to mediation. As a result, the possibility of a general strike scheduled for the 21st has become a reality.

The Central Labor Relations Commission announced on the 13th that it had accepted the post-mediation application from both Samsung Electronics and its labor union, and continued the mediation process—which began on the 11th—until 2:50 a.m. that day. However, a final agreement could not be reached.

The Commission explained, "During the mediation process, we presented various alternatives and facilitated discussions based on the positions of both labor and management, but the gap between the two sides was significant." In particular, after the labor union requested to suspend the post-mediation process, the Commission decided to end the procedure without presenting a separate mediation proposal.

Choi Seungho, head of the Samsung Electronics branch of the Super Enterprise Union, stated after the conclusion of the post-mediation, "The post-mediation has ultimately broken down." Choi further explained, "Because the differences between labor and management could not be narrowed, we requested a mediation proposal from the Central Labor Relations Commission. We waited for more than 12 hours, but determined that the mediation proposal actually represented a step back from our demands."

According to the union, the Commission's proposal included maintaining a 50% cap on performance bonuses and granting special management performance bonuses only to the semiconductor division (DS division). However, the proposal reportedly stipulated that 12% of operating profit would be used as the funding source, and that additional payments would only be made if the company achieved the top performance in the domestic market this year.

The union has been demanding the removal of the performance bonus cap and greater transparency and formalization of bonus payment criteria, but reportedly objected to the proposal, claiming it was inconsistent with these demands.

With the breakdown of negotiations, the general strike at Samsung Electronics scheduled for the 21st now appears imminent. However, the Central Labor Relations Commission stated that it is prepared to support additional mediation at any time if both sides agree to reapply for post-mediation.