The conflict over wage negotiations between Samsung Electronics and its labor union has escalated as the two sides failed to reach an agreement in the first mediation meeting, sparking heightened interest in the possibility of a strike materializing.
According to industry sources on March 6, Samsung Electronics and the National Samsung Electronics Union held their first mediation meeting at the Central Labor Commission in the Government Complex Sejong in Sejong City on the previous day, but did not come to an agreement. The two sides are scheduled to hold a second mediation meeting on March 8.
The Central Labor Commission plans to listen to both parties’ arguments and investigate related facts before holding a main mediation to propose a settlement plan. If both parties accept the Commission’s proposal, a dramatic settlement will be achieved. Conversely, if either party rejects the proposal, the union will secure the right to strike.
If the Central Labor Commission deems that the consultation is insufficient, it may handle the case with administrative guidance and proceed with additional negotiations.
Currently, Samsung Electronics and its union are unable to narrow the gap in their proposed wage increase rates. In the 7th main negotiation held on Feb. 29, the company proposed a 2.8% basic wage increase rate, an expansion of long-term service leave, spouse comprehensive examinations, and an extension of fertility leave to the union.
The wage increase rate proposed by the company is an improvement over the previous 2.5%, but it falls significantly short of the 8.1% demanded by the union, leading to a breakdown in negotiations.
With the first mediation meeting only confirming the differences in positions between the two sides, attention is focused on whether the second meeting can bridge the gap.
If the union secures the right to strike and proceeds with it, this would be the first instance in 55 years since the company’s establishment in 1969. Previously, the Samsung Electronics union secured the right to strike in 2022 due to conflict over wage negotiations but did not actually go on strike. Instead, continuous dialogue with the company led to a dramatic negotiation settlement in August of that year.