Samsung Electronics has long maintained a no-union policy. Consequently this approach left the company vulnerable to a strike threat. Yang Hyang-ja, a former Samsung executive and opposition candidate for Gyeonggi Province governor, made this statement recently. Therefore this no-union policy prevented Samsung from building a culture that embraces unions. As a result the tech giant now faces a possible strike at a critical time. Samsung runs major chip bases in Giheung, Yongin and Pyeongtaek.
Samsung Chair Lee Jae-yong officially ditched the no-union policy in 2020. He acted after executives received convictions for union busting. Nevertheless Yang argued that Samsung’s management lacks experience in dealing with unions. The company had operated for decades without a union. For instance Samsung offered a merit-based pay system instead. Now, amid an artificial intelligence boom, Samsung reaps enormous profits. However management and the union have clashed for months over bonus calculations.
The union demands lifting the bonus ceiling of 50 percent of annual salary. Management rejects this call and refuses to reset the bonus basis. Moreover Yang warned that global supply chain disruption is imminent. Small and mid-sized companies in the semiconductor ecosystem will suffer spillover effects. They will need to adjust their investment plans for ongoing projects. Accordingly Yang urged the government to minimize damage to affected SMEs. Thus the public sector’s responsibility to mediate the dispute is growing.
Yang started a hunger strike on Monday evening near Samsung’s Pyeongtaek chip plant. She called for a pay dispute resolution through this action. Yang joined Samsung as a high school graduate in 1986. She rose to an executive position in 2014 and entered politics in 2016. As a lawmaker from 2020 to 2024, she led legislation for national strategic industries. Yang proposed a bill to designate high-tech strategic industries for greater protection. Another bill increased tax incentives for facility investment in those sectors.
Yang argued that workers in strategic industries need separate labor rules. She said labor laws should not apply uniformly to chip workers. This no-union policy has created a unique vulnerability for Samsung. Yang will contend with Democratic Party candidate Choo Mi-ae in the governor election. The election will determine who leads Gyeonggi Province. Samsung’s labor dispute remains unresolved as the strike threat looms. Yang believes only someone with semiconductor experience can properly mediate. She has 28 years of Samsung work experience behind her. The government must act before the strike damages the national economy.
