Samsung Compliance Committee Tells Union That Samsung Must Be Seen as a "People's Company" Amid Strike Threat

[The Financial News] The Samsung Compliance Committee said that Samsung Electronics' labor and management, amid a growing threat of a general strike over performance bonuses, should recognize that "Samsung is not just a private company, but a 'people's company.'"
Before the 4th regular meeting of the SSCC held on the 21st at Samsung Life Insurance Seocho Building in Seocho District, Seoul, Chairman Chanhee Lee said in response to Samsung Electronics' union's warning of a general strike, "Choosing a method to protect workers' rights is the union's right, but it should be a little more cautious, taking into account the public who are directly and indirectly connected, including shareholders and investors." Lee stressed that the phrase "people's company" also reflects Samsung Electronics' status in the Korean economy and its industrial ripple effects.
Samsung Electronics' union will hold a large-scale rally at its Pyeongtaek campus in Gyeonggi Province on the 23rd. If its demand for performance bonuses is not accepted, it plans to carry out a general strike from May 21 to June 7. The union is openly pressuring management, saying that if the strike becomes a reality, losses for the company could reach as much as 30 trillion won due to shutdowns of semiconductor lines.
Management had proposed compensation that would exceed the ceiling for operating profit incentive pay (OPI) through special rewards if the Device Solutions Division, which handles the semiconductor business, achieves the No. 1 position in the domestic industry. The union, however, is demanding the abolition of the bonus cap and a 15% share of operating profit. Under management's proposal, a simple calculation suggests that each employee could receive about 530 million won in bonuses, but the union says the offer is unacceptable.
In addition, an individual believed to be a union member allegedly abused the company's internal security system to compile and distribute a blacklist of non-union members. Management filed a complaint with investigators on charges of illegal collection and distribution of personal information. In response, Lee said, "In labor-management relations, reaching an agreement through dialogue is the most important thing, but it is regrettable that this left room for the matter to move into criminal proceedings."
Management filed a petition with the Suwon District Court on the 16th seeking an injunction to prohibit illegal industrial action, citing the possibility of unlawful acts such as occupying workplaces during next month's strike. However, with the full implementation of the Yellow Envelope Law, or the revised Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, observers say the right to seek damages against unions and union members has effectively been weakened.
According to the Samsung Electronics Joint Struggle Headquarters of Labor Unions, about 37,000 members are expected to attend the large rally scheduled for this week at the Pyeongtaek campus. Lee added, "I agree that workers' rights should be better protected in labor-management relations, but human rights among workers must also be respected," and said, "The SSCC is monitoring the situation to ensure that no suppression or acts of violence occur with unlawful intent."
ehcho@fnnews.com Jo Eun-hyo Reporter