Labor and Management Meet on May 19 Under Government Mediation Ahead of Possible Strike
Ahead of a potential strike, labor and management at Samsung Electronics have begun seeking a last-minute agreement under government mediation. Whether the final adjustment plan to be proposed by the National Labor Relations Commission can bridge the gap between the two sides is expected to become the greatest watershed moment in this situation.
Labor and management at Samsung Electronics have been holding a second closed-door post-mediation meeting at the National Labor Relations Commission in the Government Complex Sejong from 10:00 a.m. on May 19. It has been confirmed that the labor and management delegations and mediation commissioners are attending this meeting, which continues from the previous day, to intensively discuss the core issues of the performance bonus calculation standards and the payment ceiling.
The core of this negotiation focuses on whether the National Labor Relations Commission can derive an official final adjustment plan. The adjustment plan is a proposal prepared by compromising the demands of both sides, and if both sides accept and sign it, it will have the same legal effect as a collective agreement. As the commission sufficiently listened to the opinions of both sides during the meeting on the previous day, it plans to encourage an agreement by presenting a concrete alternative on this day.
Labor and management are currently in sharp opposition over the standards for calculating the financial resources for performance bonuses. While the labor union demands the introduction of a transparent calculation method and the abolition of the payment ceiling, the management maintains a cautious attitude, citing the uncertainty of the business environment. Park Jung-bum, the director of the mediation division at the National Labor Relations Commission, raised expectations for a settlement by stating after the negotiations concluded on the previous day, “Labor and management are actively engaging in discussions and are finding a middle ground.”
The industry is analyzing that the negotiation atmosphere has become somewhat more flexible compared to the time of the first post-mediation on May 11. While the two sides ran on parallel lines without narrowing their differences at that time, it is evaluated that practical coordination is taking place this time as the government’s strong will to derive an agreement is reflected.
Out of concern over the repercussions this situation will have on the national economy and the overall semiconductor industry, the government is leaving open the possibility of invoking the emergency adjustment power. The emergency adjustment power is a compulsory arbitration procedure invoked by the Minister of Employment and Labor when an industrial action at a public interest workplace is feared to harm the national economy. In response to this, labor circles are strongly protesting, arguing that the government is excessively suppressing labor rights.
The meeting on this day is scheduled to continue until late in the afternoon, and depending on the progress of the discussions, the possibility of the meeting being extended to continue on May 20 cannot be ruled out. If even this post-mediation breaks down, the union is expected to take steps toward a strike as announced, and Samsung Electronics is likely to face the largest labor-management crisis since its founding.
Jung Suk-yee
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