Although Samsung Electronics Won the Ruling, the Fire Still Smolders... Union Says It "Will Not Interfere With the Strike"

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[The Financial News] A court effectively sided with Samsung Electronics in a provisional injunction case seeking to ban illegal strike activity against its union, but the embers of the conflict are still alive from a legal standpoint. Legal experts say the ruling did not specify exact numbers, leaving both sides free to interpret it in their own way. For now, the union says it will press ahead with the strike, arguing that the decision "will not interfere with strike action."
According to legal circles on the 18th, Civil Division 31 of the Suwon District Court, presided over by Chief Judge Shin Woo-jeong, ruled in a case filed by Samsung Electronics against the Samsung Electronics Branch of the Samsung Group Supra-Enterprise Labor Union and the National Samsung Electronics Union, saying that "the same level of staffing as usual must be maintained."
The court accepted Samsung Electronics' argument that fire protection facilities, exhaust systems, and drainage systems all qualify as safety-protection facilities. It also said wafer-related work and other tasks fall under security work and must continue as usual even during strike action. In short, while the court recognized the strike itself, it said most processes that could harm the company if stopped must continue operating normally.
Yang Tae-jeong, managing partner at Kwangya Law Firm, interpreted the ruling as effectively banning the union's strike activity, given the nature of the semiconductor industry.
A lawyer who previously served as a judge also said the court had "effectively sided with Samsung Electronics." He added, however, that because the court did not mention a specific number of essential workers and instead referred to "usual" staffing, the company and the union could still clash later over the size of the workforce.
The part that left room for dispute was the line in the ruling stating that "during the strike period, the respondents must maintain safety-protection facilities with the same level of staffing as usual (weekdays or weekends and holidays)."
The union focused on the phrase in parentheses, "weekdays or weekends and holidays," after the words "as usual." In other words, the union argues that the court found weekend and holiday staffing to count as normal staffing, meaning it could operate with a minimum workforce smaller than the 7,000 workers Samsung Electronics had requested for weekdays.
The 7,000 figure was the minimum number of workers Samsung Electronics said it needed for life and safety when it sought the injunction to ban the strike.
Majung Law Firm, which represents the union, said, "The union argued for weekend and holiday staffing, and that point was accepted, so the specific number of workers should be less than 7,000." It added, "Samsung Electronics wants the company to identify the necessary staffing by department in detail so the union can direct its members, and the union will carry out the strike action scheduled for the 21st."
Legal experts, however, offered a different view. A lawyer in Seocho District said, "Since negotiations between the union and the company are still under way, this appears to be a strategy to preserve bargaining power by signaling that the strike will go ahead." Another lawyer said the union seemed to have "misread the court's ruling."
When issuing the injunction, the court ordered that if the union violates the decision, it must pay 100 million won per day of violation, while the branch leader must pay 10 million won. A lawyer who previously served as a judge said, "If the company demanded 7,000 workers and the union deployed 6,900, and an accident occurred, the union would be held responsible."
If the strike drags on, the union could face growing financial pressure from enforcement fines. If it goes ahead with occupying facilities that the injunction prohibited, it could also be charged with obstruction of business under the Criminal Act. Analysts also say public opinion and pressure from the Government of South Korea would weigh on the union.
A former chief prosecutor said, "If the Samsung Electronics strike becomes a reality, not only Samsung Electronics share price but also public sentiment will suffer." He added, "If the stock market falls, it could affect the next election as well, so from the government's perspective, it seems highly likely that it would invoke an Emergency arbitration order if the situation turns critical."
hwlee@fnnews.com Lee Hwan-ju, Kim Dong-gyu, and Jeong Gyeong-su Reporter