The rally featured performances by comedian Yoon Sung-ho, known as NewJeansNim, as well as singers Ailee and YB (Yun Do Hyun Band). (Yonhap)
SEOUL, May 24 (Korea Bizwire) –As wage negotiations between Samsung Electronics and its labor unions restarted, the company’s largest union, the National Samsung Electronics Union (NSEU), held a rally disguised as a cultural event on May 24.
The gathering drew an estimated 2,000 participants, according to the union, outside Samsung’s headquarters in Seoul’s Seocho District.
This marked the second such action by the union since its initial “cultural event” last month at Samsung’s component research building in Hwaseong, Gyeonggi Province, on April 17.
The union is demanding that Samsung negotiate wage increases directly with the union rather than through the labor-management council. It also wants performance bonuses to be based on operating profits and substantive improvements to vacation policies.
“Even if the Device Solutions division generates an operating profit of 11 trillion won this year, the company is talking about paying zero performance bonuses based on the EVA (Economic Value Added) criteria,” said Son Woo-mok, the union’s leader. “If employees could be compensated based on operating profits, it would be a great motivator for their efforts.”
The rally featured performances by comedian Yoon Sung-ho, known as NewJeansNim, as well as singers Ailee and YB (Yun Do Hyun Band).
Around 200 members of the Korean Metal Workers’ Union, affiliated with the more militant Korean Confederation of Trade Unions, also joined the event after the Samsung union officially requested their support.
This has sparked speculation that the Samsung union, currently under the more moderate Federation of Korean Trade Unions, might switch its affiliation to the Korean Confederation of Trade Unions.
The gathering drew an estimated 2,000 participants, according to the union, outside Samsung’s headquarters in Seoul’s Seocho District. (Yonhap)
“Any change in affiliation has to follow regulations and sufficiently reflect the opinions of our members,” said Lee Hyun-kuk, vice president of the Samsung union.
Some have voiced concerns that the labor action could undermine internal unity at a time of tension within Samsung Electronics, such as the recent abrupt replacement of the head of its semiconductor business, hindering efforts to overcome the current crisis.
Samsung’s semiconductor division reported a record operating loss of 14.9 trillion won last year due to a downturn in the industry.
Dismissing claims about potential “union risks,” Lee emphasized, “The labor rights of our members must be respected.”
After failing to narrow their differences since January, Samsung and the union reached an impasse in March. The union then secured the legal right to strike through a membership vote after mediation efforts by the National Labor Relations Commission broke down.
However, the two sides resumed working-level negotiations on wages on May 21, expressing hope for active discussions and a mutual commitment to reaching an agreement. The main negotiation session is scheduled for May 28.
Currently, Samsung and the union remain divided over wage increases and vacation policies. While the company proposed an average 5.1% raise through the labor-management council, the union is seeking a 6.5% increase.
Vacation improvements are also expected to be a contentious issue in the upcoming talks. Samsung had promised better vacation benefits on the condition of combining negotiations for 2023 and 2024, but the union aims to ensure tangible benefits for its members.
The union has warned that if no significant progress is made during the main negotiations, it will hold a press conference the following day, May 29, in front of Samsung’s Seoul headquarters. However, the union remained tight-lipped when asked if it would consider a strike in the event of a breakdown in talks.
Samsung Electronics has not experienced a strike since its founding in 1969. In 2022 and 2023, although wage negotiations stalled and the union secured the right to strike through mediation, it did not escalate to an actual walkout.
M. H. Lee (mhlee@koreabizwire.com)
