Samsung Electronics and its labor union will hold final talks on Monday before a planned 18-day strike. These final talks mark the second round of post-mediation negotiations at the National Labor Relations Commission. Commission chair Park Soo-geun will also attend the session. The union plans to begin its walkout on Thursday if the parties fail to reach an agreement.
Samsung Chair Lee Jae-yong issued a rare public apology on Saturday. He appealed for unity after returning from a business trip to Japan. Lee called union members and Samsung family one body and one family. He urged both sides to move in one direction. He also apologized to customers and the Korean public for causing concern.
The negotiations will focus on Samsung’s performance bonus structure. The union demands 15 percent of operating profit for a bonus pool. It also wants to remove the current cap of 50 percent of annual salary. Based on projected operating profit of 300 trillion won, the union proposal would create a 45 trillion won bonus pool. Management counters with a special bonus equal to 10 percent of operating profit. That bonus applies only if Samsung regains the industry’s top position. The union signaled it could accept a lower profit-sharing ratio in exchange for expanding Samsung’s stock-based OPI program.
Prime Minister Kim Min-seok welcomed the resumption of these final talks on Sunday. He reiterated that the government could invoke emergency arbitration if negotiations collapse. Labor groups have pushed back sharply against government intervention. The Federation of Korean Trade Unions criticized attempts to portray Samsung’s chip union as aristocratic. The Korean Confederation of Trade Unions warned of a dangerous precedent for other strategic industries. If the final talks fail, the strike will proceed on Thursday. The government then faces a difficult decision on arbitration.
