Samsung to set up arbitration body over leukemia talks

Samsung Electronics President and Head of Communications Rhee In-yong, left, talks with Banolim Founder Hwang Sang-ki, right, and other representatives from Samsung and Banolim. They are in the first round of negotiations to resolve compensation settlements over cancer-stricken former Samsung workers at local Samsung manufacturing clusters, on May 28. / Korea Times file

Six out of eight victim families in compensation talks

By Kim Yoo-chul

Samsung said it has agreed with six representatives at talks currently underway on providing compensation to victims who developed leukemia after working at a chip and display-manufacturing plant, to set up an arbitration body in an effort to agree on financial settlements.

"Samsung Electronics agreed with six of eight affected families to establish an arbitration body on a compensation settlement for the victims and their families. Further discussions will soon get underway," Samsung said in a statement, Wednesday.

This is the first time in four months that Samsung has established an independent unit on compensation settlements since its vice chairman Kwon Oh-hyun made a public apology to those suffering from leukemia and vowed to compensate them.

Samsung said that it was approached by a number of families who want to develop the talks.

"Those families, who suggested setting up a coordination body on compensation, insisted that the ongoing talks should see breakthroughs by narrowing differences," added the statement.

The previous seven rounds of talks with Banolim, the group representing the affected former Samsung workers and their families, have so far been stalled because the two parties held different views over several key issues.

Since the apology, Samsung has been negotiating with Banolim. Initially, the group sent eight negotiators, including its attorney and legal adviser Lee Jong-ran, to the talks.

Banolim insisted that Samsung should compensate hundreds of additional workers who worked at various manufacturing plants operated by Samsung affiliates.

Meanwhile, the local advocacy group wants Samsung to provide a comprehensive list of chemical products currently in use at its plants, a condition that Samsung is unlikely to accept.

Samsung then offered them a detailed compensation proposal, bypassing Banolim. Six accepted the offers, said officials.

Samsung then attempted to speed up the development of talks after a local appellate court ruling in August which stated that the company is at fault for the deaths of two of its former workers from acute leukemia.

The decision upheld a 2011 ruling by the Seoul Administrative Court, which blamed Samsung for the deaths of two female employees who worked on a chip production line. The decision was the first that linked leukemia to cancer-causing substances present at Samsung manufacturing facilities.

"Now, the talks which have been stalled will have a significant breakthrough," said chief Samsung negotiator and head of the company's communications Baek Soo-hyun.

Song Chang-ho, one of the families’ representatives, said the six families will suggest guidelines regarding obtaining compensation from Samsung during the next round of talks.

"The new guidelines will include three key things _ compensation, an apology and ways to strengthen the safety of Samsung manufacturing lines," he said.

Conflicts

But Samsung is being asked to further develop the talks with Banolim.

As the six representatives left the negotiations after they agreed with Samsung for separate compensation settlement talks, the local advocacy group now has two negotiators, founder Hwang Sang-ki and Kim Si-neou.

Hwang is the father of Hwang Yu-mi, who died in 2007 at age 23, of acute myeloid leukemia after working in Samsung's factory in Yongin, on the outskirts of Seoul.

Banolim said it won't support moves by Samsung to establish the coordination body because it believes a lot of issues should be addressed before compensation talks can develop further.

"Well, we can participate; however, it's too early to talk about it," said Kong Yoo Jeong-ok, a member of Banolim.

Kong strongly blamed Samsung over the company's reluctance to talk with the group.

"Samsung agreed with Banolim on May 13 to develop compensation talks according to six separate guidelines, and 33 former Samsung workers who developed an occupational illness agreed. But Samsung failed to suggest detailed proposals," said Kong.

The Samsung chief negotiator Baek said the failure of the disclosure of detailed compensation proposals was due to a lack of guidelines on negotiations.

While some families want to receive compensation, Banolim is planning to expand its fronts by asking Samsung to pay all factory workers who are suffering from serious diseases.

As Banolim seems to be putting more focus on resolving Samsung's other labor-related issues, conflicts between Samsung, Banolim are expected to continue, according to industry officials.

Banolim recently held a press conference in front of Samsung's main office in southern Seoul and asked the company to compensate 164 more workers who developed cancer and other diseases at Samsung affiliates.

Samsung is actively taking on labor-related issues, globally, as it operates many manufacturing plants in Asia, Europe, North and South America and South Africa using local staff.

Samsung vowed to improve working conditions at its factories in China after it was alleged by China Labor Watch that the world's biggest smarpthone manufacturer exploited child labor.