Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Samsung Electronics unions refuse further talks with management
Choi Seung-ho, leader of Samsung Electronics' labor unions, speaks to reporters at the Suwon District Court, Gyeonggi Province, Wednesday, after a court hearing on the company's injunction request seeking to ban the strike. Yonhap
By Nam Hyun-woo
Gov't won't rule out possibility of forced arbitration
After a government-arranged mediation session ended without progress, the leader of Samsung Electronics labor unions’ said Wednesday that the unions are “not considering additional talks with management” until after the 18-day strike scheduled to start on May 21.
Choi Seung-ho, head of Samsung Electronics Labor Union, which leads an alliance of three unions in joint negotiations, said they have no intention of participating in additional mediation sessions, arguing that the company’s proposals have shown no meaningful progress during the past five months.
“We lowered our demands to make an agreement possible, but the company’s proposal has not changed at all,” Choi told reporters after a court hearing on the company’s injunction request seeking to ban the strike. “Extending mediation further under such circumstances would only weaken momentum for the general strike.”
The remarks came after the follow-up mediation session ended earlier in the day without results, increasing the likelihood of the strike, which is expected to see strong participation by employees from the company’s chipmaking division.
The two sides have locked horns over institutionalizing the company’s bonus system, with management rejecting union demands for a legal guarantee allocating 15 percent of operating profit for performance bonuses, as well as the removal of the bonus cap.
Management, meanwhile, wants to maintain the current practice of distributing an amount equivalent to 10 percent of operating profit without fixing the ratio in its collective bargaining agreement. It also rejected removing the bonus cap.
During the mediation session, the government also proposed a compromise, but the unions rejected it for substantively maintaining the existing bonus system.
Prime Minister Kim Min-seok, center, speaks during a ministerial meeting at Government Complex Seoul, Wednesday. Yonhap
The presidential office said Wednesday that the government will actively support efforts to resolve the issue through dialogue before the planned strike.
"Though the latest session has ended, the government will continue supporting efforts for labor and management to resolve the issue through dialogue while time still remains," presidential spokesperson Kang Yu-jung said.
Prime Minister Kim Min-seok also said Wednesday that the government would provide “whatever assistance” was necessary to prevent the planned strike.
“The dispute should not lead to a strike under any circumstances,” Kim said during a meeting with labor and industry ministers, according to the Prime Minister's Office.
Deputy Prime Minister and Finance Minister Koo Yun-cheol also wrote on social media that “there must never be a strike” and that “the government will support efforts until the end to ensure the issue is resolved through negotiations under any circumstances.”
While stressing the importance of dialogue, the government remained cautious about invoking an “emergency adjustment of industrial action” to legally prevent the strike.
Under Korea’s labor laws, the labor minister can suspend collective actions for 30 days when the scale of a strike is deemed likely to impair the national economy or endanger citizens’ daily lives.
Samsung Electronics Executive Vice President Kim Hyung-ro, the company's top negotiator in wage talks with its labor unions, leaves the National Labor Relations Commission in Sejong, Wednesday, after a follow-up mediation session at the commission ended without results. Yonhap
The emergency measure is one of the strongest tools that the government can employ in handling labor disputes because it not only prevents strikes but also effectively forces labor and management into a settlement process.
Once invoked, the two sides are required to resume mediation sessions, and if that mediation fails, the case moves to a binding arbitration process at the discretion of the National Labor Relations Commission. At that stage, both sides must accept the commission’s compromise plan, and no legal appeal is permitted.
The measure carries significant political risks, as it could be seen as the state interfering with workers’ rights. Although labor groups in Korea have so far not openly aligned themselves with Samsung Electronics’ unions, direct government intervention restricting labor actions could trigger strong backlash from organized labor.
Kang said there was still time left before considering the adjustment. Labor Minister Kim Young-hoon also said during a YouTube livestream on Wednesday morning, “The government’s position is that this issue must be resolved through dialogue.”
Union leader Choi said he did not believe an emergency adjustment would be invoked, adding, “the government appears to believe workers should fight and win through negotiations, and we are also fighting lawfully.”
Chances for a last-minute settlement are decreasing, putting greater attention on the court decision regarding the injunction request filed by Samsung.
The Suwon District Court held a hearing on Wednesday over Samsung Electronics’ request, and will make its decision no later than May 20.
Industry officials speculate that the court may grant a partial injunction, following the precedent established in a separate ruling on an injunction by Samsung Biologics. An Incheon court allowed the union to strike but ruled that workers involved in the final stages of the drug production process should not walk out because labor law prohibits actions that may cause serious deterioration of raw materials and products.
Samsung Electronics management has asked the court to block the strike, arguing that wafer deterioration could occur during a walkout.
Choi rejected the claim and said, “There are many ways to prevent wafer deterioration,” noting that there were ways to cooperate with management to prevent issues and calling management's concerns about potential material degeneration "irrational.”
“Regardless of the outcome of the injunction request, we once again emphasize that lawful industrial actions, including the general strike, will proceed as planned,” the unions said in a statement.
As of Wednesday afternoon, 42,558 Samsung Electronics union members had expressed their intention to join the strike through a survey. Industry officials speculate that the strike may lead to losses that could reach up to 40 trillion won ($26.8 billion).