Samsung labor talks intensify after gov’t mentions emergency arbitratio...

(Yonhap)

Samsung Electronics Co. labor talks intensified as the government pushed both sides toward a settlement ahead of a possible strike, while warning it could invoke emergency intervention powers if negotiations fail.

Choi Seung-ho, head of Samsung Electronics‘ largest labor union, said on Sunday that an informal meeting was held at the request of Yeo Myung-koo, chief management negotiator in talks with the union.

“Management asked whether we could accept a proposal that was a step back from a previous mediation proposal,” Choi said, adding that the company’s stance appeared to have shifted after the government mentioned possible intervention.

He also said management was pressuring the union by signaling possible government intervention and mediation, adding that there would be “no agreement” if the company maintains the same position at Monday’s meeting.

According to Choi, management’s revised proposal would maintain the cap on the overall profit incentive (OPI) bonus pool at 50 percent of annual salary while allowing employees to choose between 20 percent of economic value added (EVA) or 10 percent of operating profit.

The proposal also included an additional 9-10 percent of operating profit, separate from OPI, if the semiconductor division’s operating profit exceeds 200 trillion won ($133.3 billion), split 60 percent companywide and 40 percent by division.

Samsung Electronics and the union are holding a second post-mediation meeting in Sejong on Monday morning, in what is widely seen as the final opportunity for talks before a strike.

Prime Minister Kim Min-seok said in a televised address on Sunday that the government will consider all response measures to protect the national economy if necessary, referring to “emergency adjustment” powers.

Emergency adjustment powers allow the labor minister to suspend strikes for up to 30 days under labor union law if industrial action is deemed likely to seriously harm the national economy or disrupt public life. During that period, compulsory mediation is conducted by the National Labor Relations Commission.

The presidential office also urged settlement, citing concerns over the potential economic impact of a strike. “The dispute should be resolved through negotiations,” said Kang Yoo-jung, senior presidential spokesperson, warning of the “very serious consequences” a strike could bring.