Samsung Electronics and its labor union returned to the negotiating table three days before a planned total strike, but experts predict that any outcome will severely impact the company's competitiveness. Since its founding in 1969, Samsung Electronics has been known for its lack of labor disputes, but the internal turmoil it is currently facing is expected to have greater consequences than anticipated.
On May 18, political and industry sources reported that Samsung Electronics and its labor union resumed a second post-adjustment meeting at the Central Labor Relations Commission in Sejong. This meeting is effectively the last dialogue before the total strike.
The situation is not favorable for the union. The Suwon District Court partially granted Samsung Electronics' request for a temporary injunction against unlawful labor actions by the Samsung Electronics branch of the super-union and the National Samsung Electronics Union. Legal experts interpret this decision as not denying the union's right to strike but confirming legal limits on the methods and scope of labor actions.
The government is also increasing pressure. Prime Minister Kim Min-seok stated that if the Samsung Electronics strike poses significant damage to the national economy, all response measures, including emergency mediation, could be considered.
President Lee Jae-myung also commented on social media that "both labor and management should be respected, and the rights of labor should be balanced with management rights." He further noted that fundamental rights may be restricted for the public good, signaling that the government's crisis awareness has reached a critical point.
Despite this, the union has not backed down from the total strike option. Choi Seung-ho, chairman of the Samsung Group super-union, entered the second post-adjustment meeting stating, "I have nothing significant to say, but I will participate sincerely in this meeting." He did not respond to questions about how he interpreted the president's remarks.
Separately from the efforts of management and the government to avert a strike, concerns have been raised that internal divisions within Samsung Electronics have reached a dangerous level. The conflict between the semiconductor and non-semiconductor sectors has become so pronounced that they seem difficult to view as part of the same company.
The day before, a screenshot of remarks made by the union's vice-chairman, Lee Song-yi, in a union Telegram chat, suggesting "let's eliminate the company" and "let's spin off" went viral on the anonymous workplace community Blind, causing a stir. Although Lee clarified that her comments were distorted, the internal sentiment remains unsettled.
Industry insiders view the public disclosure of such remarks as indicative of a breakdown in organizational trust at Samsung Electronics. Some employees have even suggested extreme measures, such as moving to Chinese company CXMT to leak technology if negotiations fail. Regardless of the truth of these claims, the mere discussion of such ideas within the company is seen as a serious warning sign for a semiconductor firm.
The unexpected demands from the non-semiconductor union are further complicating the situation. The Samsung Electronics Labor Union Donghaeng and the National Samsung Electronics Union Suwon branch reportedly called for a portion of performance bonuses to be distributed to partner companies during the post-adjustment process. Industry analysts believe that the expansion of performance bonus discussions beyond semiconductor employee compensation to include partner distribution issues is dragging the negotiations into a quagmire.
The Samsung Electronics union has been demanding that 15% of operating profit be fixed as the source for performance bonuses and that the cap on bonuses be eliminated. Concerns have been raised in the industry that if these demands are accepted, performance bonuses could effectively become semi-fixed costs, potentially triggering a ripple effect throughout the domestic industry. There are also assessments that unreasonable demands have intensified internal conflicts regardless of whether a strike occurs.
Experts believe that even if a strike is averted, the issues will not be resolved. With the union's hardline rhetoric and internal divisions now exposed, restoring organizational cohesion will likely remain a significant challenge.
Kim Yang-pyeong, a senior researcher at the Korea Institute for Industrial Economics and Trade, stated, "Once damage occurs in semiconductor manufacturing processes, it leads to reduced production and yield. More seriously, it will inevitably impact long-term trust and related aspects."
* This article has been translated by AI.
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