By Yoon Sung-won
The arbitration committee for Samsung Electronics’ leukemia dispute recommended on Thursday that the company donate 100 billion won ($86.13 million) to establish a public foundation to compensate its former workers who have suffered from diseases after working at its display and semiconductor facilities.
However, it is unlikely Samsung Electronics will accept the committee’s proposal as the company has repeatedly opposed the establishment of such a foundation.
“We will thoroughly consider the proposal from the arbitration committee. But it is true that the proposal has content we have repeatedly said we will have difficulty accepting,” Samsung Electronics said in a statement released after the announcement of the proposal.
On Thursday, the three-member body, which has been established to mediate on the dispute between Samsung Electronics and the victims, held a meeting in Seoul and announced an arbitration proposal.
The committee said a public foundation is needed to take the leading role in the compensation for the victims and following actions to prevent a recurrence of such industrial incidents in the future.
It also asked Samsung Electronics and the nation’s semiconductor industry to make donations and delegate the public foundation to administer the money to perform its role following the rules and standards set by the arbitration committee.
“As one of the world’s leading conglomerates Samsung Electronics has shown its willingness to fulfill its social responsibility. We believe a donation is a suitable form to make the company’s willingness in a visible initiative for the public interest,” Kim Ji-hyung, a member of the arbitration committee said in a meeting at the office of local law firm Jipyong in central Seoul, Thursday.
Kim said the public foundation will consist of seven representatives recommended by law experts, civic groups and professionals in industry safety and healthcare.
The committee said the foundation will operate an ombudsman program to monitor whether Samsung Electronics properly implements measures to prevent future incidents at its offices and manufacturing facilities.
The mediation body added the company should also research harmful materials that cause health problems and make proactive efforts to help those who are have health problems caused while working at a Samsung workplace.
The proposal also suggested the way of making proper apology to the victims.
“The committee suggests Samsung Electronics’ chief executive officer make a public recital of a written apology and separately send apologies to all those who are judged by the public foundation to be qualified for the compensation,” Kim said.
Kim said all related parties will have 10 days to register any opposition to the proposal before it is considered accepted by everyone.
The committee said it has consulted with research done in Korea, Taiwan, Britain and the United States, and found that 12 diseases are subjects for compensation. Alongside leukemia, lymphoma, breast cancer, brain tumors, ovarian cancer and other rare diseases that can be transferred through generations are included on the list.
It also said those who started to work before Jan. 1, 2011, and remain at work for at least one year can get the compensation.
It was the first time for the mediation body to announce a proposal since Samsung Electronics Vice Chairman Kwon Oh-hyun made an apology and promised compensation 14 months ago.
The issue has ignited after Hwang Yu-mi, a female laborer who had worked at Samsung Electronics’ Giheung semiconductor manufacturing line in Gyeonggi Province, died of an acute leukemia in 2007.
The three parties -- Samsung Electronics, civic group Banolim and the Family Leukemia Countermeasure Committee -- have disputed with the most over the establishment of the foundation.
The victims and the families have strongly pushed for the needs of such an independent foundation. On the contrary, Samsung Electronics have shunned the idea, citing a possibility of anyone outside the company looking into its workplaces with an ill purpose.
“We have pushed for the establishment of a public foundation because we believed it is much needed in order to make the company follow the proposal properly,” said Jeong Ae-kyeong of the Family Leukemia Countermeasure Committee. “I think the proposal have no major problem to comment though the detailed parts are too complicated to talk about right now.”