Emergency arbitration, court injunction and internal dissent loom as union prepares May 21 walkout
Samsung Electronics is moving closer to what could become its largest-ever strike, after its union effectively rejected the company’s latest call for talks and signaled it would press ahead with a planned walkout next week.
According to industry sources Friday, Samsung Electronics sent a letter to the union earlier in the day, outlining its position on key issues and calling for further talks.
The union rejected the offer, saying it would be willing to discuss the matter only after June 7, when the planned strike is scheduled to end.
The walkout is scheduled to begin May 21. As of Friday, more than 50,000 Samsung Electronics employees were expected to take part, raising the prospect of the biggest labor action in the company’s history.
In the letter, Samsung called for renewed talks without preconditions.
“We once again propose that we meet and talk unconditionally, in line with the wishes of employees, shareholders and the public who hope for a negotiated settlement,” the company said.
But the company stopped short of offering a new package.
On the union’s demand for greater transparency in bonus calculations, Samsung said it had already proposed during mediation by the National Labor Relations Commission in March a formula under which the pool for its overall performance incentive would be based on either 10 percent of operating profit or 20 percent of economic value added.
Samsung also said it had proposed a separate special reward program without a cap, while keeping the current OPI system in place.
The union dismissed the response as a repeat of the company’s previous position. Samsung's largest union chief Choi Seung-ho said the union would “properly exercise the rights guaranteed by the Constitution.”
The deadlock has turned attention to whether the government will invoke emergency arbitration and how the court will rule on Samsung’s request for an injunction against what the company calls unlawful strike activity.
The union is also understood to have effectively rejected a post-mediation session proposed by the National Labor Relations Commission and scheduled for Saturday, putting greater focus on possible emergency arbitration by the government and the court’s decision on Samsung’s injunction request.
Emergency arbitration is an exceptional measure available to the labor minister when a strike is deemed likely to cause serious damage to the national economy. Once invoked, the union must suspend the strike for 30 days.
The government had been cautious about using the measure. But Industry Minister Kim Jung-kwan wrote on social media Thursday that emergency arbitration would be “unavoidable” if the strike goes ahead.
Business groups have also been calling for government action. Some in the industry estimate that Samsung could suffer direct and indirect losses of up to 100 trillion won ($67 billion) if the strike continues through June 7 as planned.
Samsung’s injunction request is another pressure point. The company has asked the court to ban what it describes as unlawful strike activity, citing the need to keep safety protection facilities at its semiconductor plants running, prevent wafer damage and stop the occupation of key facilities.
The Suwon District Court has held two hearings on the request. A decision is expected by Wednesday, a day before the planned strike begins.
Legal and industry observers say the court is unlikely to block the strike itself, even if it sides with Samsung. Any injunction would likely be limited to safety-related facilities and certain essential processes, leaving most union members able to join the walkout.
Still, a court order could narrow the scope of lawful strike activity and raise the legal stakes for the union.
The union is also coming under pressure from within.
Some workers in Samsung’s Device eXperience division, which oversees finished products such as smartphones, TVs and home appliances, have called for legal action against the union chapter currently representing employees in wage talks with management.
According to posts shared on an internal online forum used by Samsung Electronics employees, they argue that the union has focused too heavily on demands from the Device Solutions division, which oversees Samsung’s semiconductor business, while failing to reflect the concerns of DX division employees.
The divide has also surfaced inside the company, with some DS employees adding “strike” to their internal messenger profiles and some DX employees pushing back with calls to use “Oppose DS strike” instead.
The DX employees are seeking an injunction to stop the union from signing a wage agreement or proceeding with the strike. Hundreds are said to support the move, and funds are being raised for legal costs.
Some have also objected to the union’s decision to raise monthly dues to 50,000 won during the strike period, with several reportedly saying they would leave the union and put the same amount toward the legal fund instead.
If filed, the injunction would add another legal challenge for the union before the walkout, on top of the case already brought by management.
The labor tensions come as Jun Young-hyun, vice chairman and head of the DS division, has been urging semiconductor executives to stay focused on competitiveness despite the recent earnings rebound.
At a recent management briefing for DS executives, Jun told them not to become complacent.
“We should not settle for current performance,” he was quoted as saying. “We must see the current upturn as a critical window to restore our fundamental competitiveness.”
To the memory business, Jun emphasized the need to rebuild trust with customers and take a more customer-first approach.
Samsung Electronics posted record first-quarter results this year, with sales of 133.87 trillion won and operating profit of 57.23 trillion won.
Jun’s remarks suggest that management is trying to keep the organization focused on longer-term competitiveness, rather than the short-term boost from the chip market recovery.
Industry sources say a prolonged walkout could weigh not only on production but also on customer confidence and supply commitments.
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