They Urge Government to Invoke Emergency Arbitration Powers
Min Kyung-kwon, head of the Korea Shareholder Activism Headquarters, holds a small counter-rally on April 23 along Godeok International Road near Samsung Electronics’ Pyeongtaek campus in Gyeonggi Province ahead of a large-scale rally by Samsung labor unions.
Samsung Electronics shareholders called for a swift court decision on the company’s request for an injunction banning what it describes as an illegal strike. They also urged the government to consider invoking emergency arbitration powers.
In a public statement titled “Shareholders’ Appeal to the Nation Over the Samsung Electronics Strike Crisis” released on May 13, the Korea Shareholder Activism Headquarters and Samsung Electronics shareholders said, “We ask the court to prevent national-level losses by making a swift decision to grant the injunction, alongside a thorough legal review of the announced strike action, which carries elements of illegality.”
The group also appealed to the government, saying, that “fewer than 10 days remain until the planned strike date,” and urged authorities to “actively consider invoking emergency arbitration powers under the Trade Union and Labor Relations Adjustment Act in light of the national and economic crisis.”
Regarding the general strike scheduled following the breakdown of post-mediation talks at the National Labor Relations Commission between Samsung Electronics management and labor unions, the shareholders expressed concern, saying, “Samsung Electronics is not just a simple company, but a key national industry that supports South Korea’s exports and stock market,” and that “if the strike becomes a reality, it could inflict irreversible damage on the company, its suppliers and the broader national economy.”
In particular, regarding the union’s demand for performance bonuses amounting to 15 percent of operating profit, the shareholders argued that “operating profit is a financial resource allocated through procedures involving taxes, investment and dividends,” and that “fixing a specific percentage in advance as wages could infringe on financial and accounting order as well as management judgment.”
They added that “demands for performance bonuses based on operating profit are difficult to recognize as a legitimate subject of collective bargaining, and strike action aimed at securing such demands may also struggle to gain legal justification.” They warned that “if an illegal strike is carried out, issues of civil and criminal liability could arise.”
At the same time, the shareholders appealed to both management and labor, saying, “We appreciate both sides for engaging in overnight negotiations for the future of the company,” and urged them to “return to the negotiating table in a spirit of mutual growth.”
Meanwhile, the shareholders plan to stage a counter-protest against the labor union near the residence of Samsung Electronics Chairman Lee Jae-yong from 10 a.m. to 11:30 a.m. on May 21.
The move comes as the joint labor action committee of Samsung Electronics unions has also reported plans for a rally at 1 p.m. on the same day, prompting the shareholders to announce their position in advance.
The labor union plans to deploy at least 550 people in front of Lee’s residence on the first day of the planned general strike, including 50 executives and officials as well as 500 occupation staff members.
Jung Suk-yee
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