Samsung Display union caves in, ends protest

Samsung Display's Asan campus in South Chungcheong Province / Yonhap

By Kim Bo-eun

Samsung Display's union ended its protest against management over wage hike levels, Monday, two weeks after staging a partial walkout.

The end of the protest comes as a relief for the Samsung affiliate, given the group is highly sensitive to issues regarding unions.

Six members of the union began protesting at its Asan campus in South Chungcheong Province on June 21, making this the first such action at a Samsung affiliate since the group leader Lee Jae-yong pledged to better comply with laws protecting workers' rights, after decades of intolerance for union activity.

The protest had drawn attention over whether it would grow into a larger-scale action against the management, possibly affecting unions of other Samsung affiliates to follow suit. The union appeared to have exercised caution in launching a collective action, taking such possibilities into account.

The union had earlier refused to accept a 4.5 percent wage hike for 2021 that was agreed at a labor-management council meeting. It demanded a steeper hike of 6.8 percent, along with improved allowance for hazardous duties.

But the union decided to accept the 4.5 percent raise after holding a meeting with management on June 30, it said. Samsung Display's wage hike for 2019 was 3.5 percent and for 2020 was 2.5 percent.

"Management did not propose a higher raise, but instead offered other benefits," Kim Jong-soo, vice chairman of the company's union, said Tuesday. "We determined an extended protest would give rise to risks, and decided to pursue an improved wage hike in negotiations for next year that will follow in a few months."

Samsung Display declined to comment on the matter.

Samsung Display's union has about 2,400 members, which constitutes only around 13 percent of the display maker's workforce. Samsung's affiliates have over 20 unions. The union's demands came at a time workers of tech firms are becoming increasingly vocal on the issue of better compensation.

Companies including chipmaker SK hynix, telecom operator SK Telecom and portal giant Naver took measures earlier this year to boost compensation for employees after unions claimed the firms' enhanced earnings were not reflected in their pay.

Samsung Display reported 30.59 trillion won in sales and 2.24 trillion won in operating profit last year on the back of a surge in demand for TVs, as people have been spending extra time at home amid the pandemic. The display maker's operating profit for 2020 jumped 41.77 percent year-on-year, and 74 percent quarter-on-quarter.