Samsung-Corning Merger
Conflict between employers and workers of Samsung Corning Precision Materials (SCPM) has surfaced. Employees have expressed dissatisfaction with their transfer to Samsung affiliates, resulting from the company’s merger with Corning scheduled on January 15.
Samsung Display decided in October 2013 to buy convertible preferred shares of Corning worth US$2.3 billion (2.4 trillion won) in return for a handover of its 42.6% stake in SCPM to the US-based Corning. In addition, SCPM will be incorporated into Corning on January 15 with a change in the company’s name.
The soon-to-be-merged-company received applications from workers who desire to move to Samsung subsidiaries. 1500 people out of 4000 applied for a transfer. Nevertheless, Samsung affiliates cannot accept them all. SCPM cannot let all of them go, either.
Another problem lies in a lack of labor-management dialogue. SCPM’s union has not had any discussion with management nearly two months after its establishment. Due to the failure of holding a collective bargaining negotiation for the fifth time, the union submitted a petition to the Cheonan branch of the Ministry of Employment of Labor on January 8, claiming that the company is conducting illegal labor activities. An official at SCPM said, “The atmosphere of our company is not good at the moment.”