Union tensions emerge as new risk ahead of Samsung wage talks

(Yonhap)

Internal conflict among labor unions at Samsung Electronics is emerging as a new complication ahead of government-mediated wage negotiations scheduled for Monday and Tuesday, raising uncertainty over whether the company can avoid a second major strike confrontation in two years.

According to industry sources on Sunday, Samsung Electronics management and labor representatives will meet for post-mediation talks overseen by South Korea’s National Labor Relations Commission on May 11 and 12. The negotiations are widely viewed as the final opportunity to reach an agreement before a planned general strike set for May 21.

The latest tension stems from growing dissatisfaction among unions over compensation demands centered largely on the semiconductor division.

The Samsung Electronics chapter of the Korean Metal Workers’ Union — the company’s largest labor group and the organization holding collective bargaining authority — has focused heavily on performance-based compensation for employees in the Device Solutions division, which oversees Samsung’s semiconductor business.

That approach has triggered backlash from workers in the Device Experience division, which handles businesses such as televisions and home appliances.

Members of the National Samsung Electronics Union, the company’s second-largest union, along with employees in the DX division, argue that companywide compensation resources should be distributed more evenly across business units.

However, Choi Seung-ho, head of the bargaining union, is reportedly insisting that companywide shared compensation funds should not be included in the current negotiations and instead be discussed during next year’s bargaining process.

Frustration among union members has also led to declining membership. The bargaining union’s membership has fallen to 72,930 from 75,300 when it officially became the majority union earlier this year.

Some union members are now calling on the National Samsung Electronics Union to withdraw the bargaining authority it delegated earlier this year and replace labor representatives participating in the negotiations.

A third union, Samsung Electronics Union Donghaeng, has already withdrawn from the joint labor struggle committee.

Industry officials warned that failure to narrow differences during the post-mediation talks could push Samsung Electronics into another full-scale strike confrontation following last year’s labor dispute.

At the same time, the Suwon District Court is scheduled to hold a second hearing on May 13 regarding Samsung Electronics’ request for an injunction against alleged illegal strike activities. The court is expected to issue a decision before the planned strike date, a ruling that could affect the scale and form of any industrial action.

Employees have also voiced frustration over the prolonged negotiations on the anonymous workplace platform Blind, with some calling on union leaders to reach a compromise.

“One side says losses are approaching 30 trillion won ($20.7 billion), so it’s difficult to push ahead aggressively with a strike right before the planned walkout,” one employee wrote. “It may be better for the union leadership to find a reasonable compromise that benefits both sides.”

Another employee said workers were already struggling financially despite the recent rally in South Korea’s stock market, adding that labor groups should “reach an agreement and move on.”

A business industry official criticized hardline labor tactics, saying unions risk undermining public support if they continue to insist solely on confrontation despite growing calls for compromise even from employees.