Samsung Electronics' management and labor representatives have resumed talks under government mediation, navigating a significant strike threat—the largest in the company's history. However, substantial challenges remain, including disagreements over bonuses, conflicts within the union, and ongoing legal disputes, making a swift resolution unlikely.
According to industry sources, the superior enterprise labor union at Samsung Electronics (superior enterprise union) will engage in post-adjustment discussions with management at the Central Labor Relations Commission in Sejong City for two days starting May 11, following a meeting with the Gyeonggi Provincial Labor Office. This marks the first dialogue between the two sides in 45 days since their last meeting in March.
While post-adjustment talks lack legal binding power, they typically involve the labor commission facilitating a final agreement with the consent of both parties. This session will be conducted under a 'single mediator procedure' led by a jointly recommended commissioner.
Despite returning to the negotiation table, significant differences over bonuses persist. Management proposes to allocate 10% of operating profit as a bonus fund if the semiconductor (DS) division achieves top sales and operating profit in the domestic market, moving away from the previous cap of 50% of annual salary. They also suggested guaranteeing up to 75% bonuses for the system LSI and foundry divisions, which are currently facing chronic losses.
Conversely, the union demands the complete elimination of the bonus cap and the allocation of 15% of operating profit for bonuses. With projections indicating that Samsung Electronics' operating profit could reach up to 350 trillion won this year, if the union's demands are met, bonuses for employees in the DS division could average around 600 million won each. This would require a total bonus fund of approximately 45 to 50 trillion won, exceeding last year's research and development expenditure of 37.7 trillion won by about 32%.
Internally, the union is experiencing fractures as members from different divisions have conflicting interests. The mobile and consumer electronics (DX) divisions, which are struggling with poor performance, face significant challenges in justifying bonuses comparable to those of the memory division. The Samsung Electronics Labor Union Together, which primarily represents the DX division, has formally requested that issues affecting DX members be included in negotiations.
Some union members are advocating for a portion of the bonus fund to be distributed as a common bonus across all divisions, aiming to alleviate internal discord under the principle of 'One Samsung.' However, the superior enterprise union, which holds the negotiating power, has distanced itself from this proposal, stating it is not under consideration for this year's negotiations. With over 70% of union members belonging to the DS division, the strategy appears to focus on maintaining a compensation system based on divisional performance.
The challenge remains that even if post-adjustment talks reach an agreement, the potential for strikes persists. In 2024, after the first strike in Samsung's history, internal dissent led to a general strike despite a labor-management agreement. Concerns are growing that similar 'post-agreement turmoil' could recur. Consequently, a second hearing on the injunction against strike actions is scheduled for May 13, which could be a critical turning point.
If the court grants the injunction sought by management, the union could lose significant momentum for a strike. Conversely, if the court denies the request, the union may gain a strong justification to escalate strike actions. The Suwon District Court has indicated it will deliver its decision by May 20 at the latest.
An industry insider remarked, "If no dramatic concessions are made in this hard-won final negotiation, Samsung Electronics risks facing its largest production disruption in history, entangled in legal disputes and the turmoil of strikes. Both sides need to prioritize practical survival over mere posturing for their respective positions."
* This article has been translated by AI.
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