Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Possible strike of Samsung Display union draws attention
Samsung Display's factory in Asan, south of Seoul / Courtesy of Samsung Display
By Baek Byung-yeul
By Baek Byung-yeul
Samsung Display is on the verge of a strike, as its management and employees have failed to narrow down differences concerning their wage negotiations. If the union stages a walkout, this action would be the first case of a strike in the Samsung Group, which saw the launch of its first union in nearly half a century in late 2019.
Eyes are on whether the union members actually will go on strike as the possible walkout could affect the union activities of other Samsung affiliates. Industry officials said Monday that the group should pay mind to the possibility of a production line stoppage, due to a strike, and the consequent disruption to operations with its overseas partners.
Samsung Display's union said May 16 that they will hold a large-scale rally at the firm's workplace in Asan, South Chungcheong Province, on May 18. This action comes after the talks between management and the union failed to reach an agreement over wage negotiations. During the negotiations, the union demanded a wage increase of 6.8 percent, while the management held to their position of a maximum 4.5 percent increase.
The union then applied for mediation via the National Labor Relations Commission on May 4, but the commission's arbitration ended in failure. They decided to stop the mediation process on May 14, meaning that the union now has the legal basis to stage a walkout.
In response to the commission's decision, the Samsung Display union revealed that they have come to feel that the company's CEO has no intention of sharing the company's prosperity with the union, adding that they will express their opinions clearly at the scheduled May 18 rally.
“Who are the decision-makers of this company? Members from the management, who have been entrusted with the authority to negotiate with the union, cannot even make a decision about whether to meet our requests from the negotiation. At this time when the union has earned the legal right to stage a walkout, the CEO has not said a word. This silence makes us think either that the CEO has no intention of sharing the company's prosperity with the union or that there is no CEO within the company,” the union said in a statement.
Samsung Display, Samsung's display-making affiliate, is a non-listed company. Samsung Electronics holds an 84.78 percent stake in Samsung Display, while its battery-making affiliate, Samsung SDI, owns a 15.22 percent stake.
Since Samsung leader Lee Jae-yong apologized in 2020 over the conglomerate's long-time policy of opposition to labor unions, employees from eight affiliates have become actively engaged in union activities. These affiliates include: Samsung Electronics, Samsung SDI, Samsung Fire & Marine Insurance and Samsung Life Insurance.
Depending on whether Samsung Display's union stages a walkout, this action is expected to affect the activities of other Samsung unions. About 10 percent of Samsung Display's employees have joined the union, and if the strike is prolonged, it is likely to affect the company's production schedule.