Four labor unions representing Samsung affiliates, including Samsung Electronics, Samsung Display, Samsung Fire & Marine Insurance, and Samsung Biologics, will merge to form a consolidated labor union. The launch of this mega labor union is scheduled for the end of this month. The establishment of this integrated union is expected to usher in unavoidable changes to Samsung’s labor-management relations.
According to industry sources on Jan. 29, the Samsung integrated union is set to hold its inaugural general assembly on Jan. 31. During this event, the union plans to issue a statement announcing the establishment of the integrated union to its members. After undergoing member voting, amendments to the regulations will be implemented, including the allocation of delegates to safeguard the balance of branch decision-making rights and the installation of provisions to oversee the executive body of the merged union. In the wake of the Lunar New Year holiday in February, the integrated union plans to hold a press conference to formally announce its establishment to the public.
In 2022, Samsung’s 12 labor unions under the umbrella of the Korean Confederation of Trade Unions (KCTU) jointly advocated for demands such as a 10 percent wage increase and an extension of the retirement age to 65. However, the formal establishment of an integrated union among Samsung affiliate companies is occurring for the first time with this initiative. In the earlier merged union membership approval votes conducted by four unions, the Samsung Biologics union achieved an impressive approval rate of 99.5 percent, followed by Samsung Display union with 96.12 percent, Samsung Fire & Marine Insurance union with 90 percent, and Samsung Electronics DX union with 86 percent, indicating robust support from their respective members.
With the establishment of the integrated union, inevitable changes have swept through the landscape of labor-management relations within Samsung. Pooling together memberships from diverse unions, such as the largest, Samsung Electronics DX union boasting 6,000 members, Samsung Fire & Marine Insurance Ribbon union with 3,300 members, Samsung Display Open union comprising approximately 2,450 members, and Samsung Biologics Coexistence union with 1,600 members, the total union membership surpasses 13,000. It has also been reported that labor unions from other Samsung affiliate companies are currently considering the prospect of joining the integrated union. There is anticipation that the pressure from the union for equal treatment among affiliate companies, demanding consistent levels of compensation, performance bonuses, and welfare benefits regardless of performance, is likely to intensify in the future.
The management environment at Samsung, already weighed down by labor union risks, has become even more uncertain. Samsung Electronics, the core affiliate, has recently witnessed a significant downturn in performance due to an unprecedented semiconductor industry crisis. In the past year, Samsung Electronics recorded its worst operating profit in 15 years since the global financial crisis in 2008. Lee Jae-yong, the chairman of Samsung Electronics, who should be spearheading the company’s large-scale investments, is facing notable constraints on managerial activities due to the trial involving the unfair merger of Samsung C&T and Cheil Industries, along with alleged accounting irregularities at Samsung Biologics.