On May 21, Labor Minister Kim Young-hoon appeared on the YouTube program "Choi Wook's Maebul Show" and stated, "I believed that making public moves could create resistance, so I continued to persuade and coordinate behind the scenes."
Minister Kim personally mediated the final negotiations between Samsung Electronics and its labor union the previous day at the Gyeonggi Regional Employment and Labor Office. The two sides reached a tentative agreement just over an hour before a planned general strike.
In the tentative agreement, 40% of the special management performance bonus for the DS division will be prioritized for the entire semiconductor sector, while the remaining 60% will be distributed differentially among business units. Additionally, the implementation of penalties for loss-making divisions will be postponed until next year. The union plans to hold a vote from 2 p.m. on May 22 to 10 a.m. on May 27 to decide whether to accept the agreement.
Minister Kim noted, "The Central Labor Relations Commission's pre-adjustment and two post-adjustments did not find common ground," adding, "While Samsung Electronics is a representative company in our country, it has been a non-union company for a long time, leading to a lack of experience in labor relations. The Samsung Electronics super-large union is also a newly formed union without a higher-level organization."
He continued, "The clash of desires over how to distribute the enormous added value generated by technological innovation is a growing pain that our society must experience at some point."
Minister Kim specifically mentioned that persuading management was challenging.
"If both sides had demanded 10% and 5%, a compromise could have been reached at the midpoint of 7.5%. However, when principles clash, it becomes difficult to resolve," he said. "Management's principle that 'there should be rewards where there is performance' was very firm."
He identified the 'clash of principles' as the biggest obstacle in the negotiations. "The union accepted the terms, but management did not, making it difficult for the second post-adjustment to proceed. It was not easy to persuade management. Adjustments involve both quantitative and qualitative aspects, including values and principles," he explained.
"Quantitative aspects can allow for some compromise, but when principles clash, resolution is difficult," he added. "For example, the company argued that since this is a special performance bonus, rewards should be given where there is performance, questioning how to compensate loss-making areas. While I believe we should respect the company's principles, there are no principles without exceptions."
Minister Kim suggested, "When introducing new systems, just as laws have transition provisions and preparation periods, we should propose a postponement of the implementation date," noting that this proposal helped break the deadlock.
Regarding the adjustment process, he stated, "Both labor and management made concessions. The union stepped back from its previous position, and by proposing a postponement of the implementation date, we were able to create a breakthrough in dialogue."
He also addressed Samsung Electronics union members, saying, "Not all demands can be met at once. It is important to understand that the leadership has been deeply concerned while leading 70,000 members, and we should approach the next steps with the mindset that any shortcomings can be addressed later."
He cautioned, "If the union becomes divided and each member looks out for themselves, any future agreements will become even more difficult. We must consider not only short-term gains but also sustainability."
In response to claims that the recent labor conflict at Samsung Electronics is a result of the so-called 'Yellow Envelope Law,' he countered, "Criticizing the Samsung Electronics union as an aristocratic union that does not care for its partner companies, while arguing that the Yellow Envelope Law aims to reduce the gap between primary and subcontractors, is a contradiction in terms."
* This article has been translated by AI.
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