Samsung Display union seeks mediation, threatens strike after wage talks fail

Samsung Display's union said Friday it is preparing for a possible strike for the first time since 2021, as it failed to reach an agreement in wage talks with the company.

The union on Thursday had a fifth round of talks on wages and the collective labor agreement with the company. From the first round of negotiations on Jan. 4 to the fifth round, the negotiations broke down as the company did not bring a proposal, the union said.

The Samsung Display union had presented the company with 25 demands, including a 5 percent base wage increase, expanded paid leave and revamped criteria for its overall performance incentive system.

As the negotiations with the company broke down, the union said it decided to apply for labor dispute mediation through the National Labor Relations Commission.

"There was nothing that the company brought to the table in the negotiation process," Yoo Ha-ram, leader of the union, said. "We plan to apply for mediation soon to demand a proactive attitude change from the company."

Upon receiving the mediation application, the union and the company form a mediation committee and have a mediation period of 10 days. For the mediation to proceed, both sides must agree, but if either side does not accept it, the union obtains the right to strike legally through a vote.

In 2021, Samsung Display had its first strike since its establishment as it failed to settle wage negotiations with its union. Initially, the union demanded a 6.8 percent wage increase and an increase in hazard pay, but the company insisted that it was impossible to raise wages by more than 4.5 percent.

The union eventually went on strike but later decided to accept a 4.5 percent wage increase determined by the labor-management council through a vote by union members.