Samsung signs collective agreement with unions ahead of leader's release

Samsung Electronics' labor unions and management signed their first collective agreement at the company's Kiheung campus in Yongin, Gyeonggi Province, Thursday. From left are Samsung Electronics' Head of Device Solutions HR Choi Wan-woo, President Kim Hyun-suk, Federation of Korean Trade Unions' Head of Metal Craftsmanship Kim Man-jae and Samsung Electronics' Office Workers' Union Head Kim Hang-yeol. Courtesy of Samsung Electronics

By Kim Bo-eun

Samsung Electronics on Thursday signed a collective agreement with its four labor unions for better working conditions, a day before the conglomerate's leader, Lee Jae-yong, is to be released from prison. The main electronics company of Samsung Group signed the agreement with its unions at its Kiheung Campus in Yongin, Gyeonggi Province. Samsung Electronics' President & CEO Kim Hyun-suk attended the event, with representatives of the company's four unions.

"We hope that emplyees and management will create a future of development based on mutually sincere communication and cooperation,” Samsung CEO Kim was quoted as saying, in a press release, following the agreement's signing ceremony.

This agreement is the first between Samsung Electronics' management and labor to be signed since leader Lee vowed to abolish Samsung's long-time “no-union policy” in May of last year.

The policies in the agreement between labor and management take priority over individual labor contracts or general guidelines under labor laws.

The agreement that has been signed has 95 clauses, which include: ensuring union's right to activity, processes on addressing industrial accidents and improving human resources management systems. Samsung said that it has agreed to provide an office for the union and to ensure pay for time spent on union activities. Other affiliates ― Samsung Display and Samsung SDI ― have also signed such agreements prior to Samsung Electronics doing so.

Samsung is now under greater scrutiny to abide by the law. Its leader, Lee, was handed down a prison term for a bribery scandal involving himself and impeached former President Park Geun-hye. The justice ministry approved Lee's release from prison on parole after he served 60 percent of his prison term, with anticipation of Samsung playing a major role in helping the local economy amid the COVID-19 pandemic. Conglomerates including Samsung have in the past been excused from irregularities on the basis of their contributions to the economy.

Samsung now faces greater expectations to serve as an exemplary company, by protecting its workers' rights and providing more business opportunities to smaller firms. Samsung has established a compliance committee, following a court order, to ensure better compliance with the law. The committee is set to hold its next regular meeting on Aug. 17.

On a related note, Samsung decided to open its in-house cafeteria business to smaller firms outside of its company. Samsung has had its food business unit assume its cafeteria operations up until now. The anti-trust regulator took issue with this practice, and Samsung is now in the process of opening its in-house cafeteria operations to outside firms.