Ruling and Opposition Parties React to Samsung Electronics Labor-Management Agreement: "Grateful for the Broad-Minded Decision" vs. "Union Demands Have Grown Excessive"

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[Financial News] After Samsung Electronics and its labor union reached a tentative agreement on performance-based pay, the Democratic Party of Korea welcomed the deal, saying it was deeply grateful for the broad-minded decision made by both sides. The People Power Party said the immediate crisis had been averted, but warned that similar problems could recur.
Han Byung-do, the Democratic Party floor leader, said at a policy coordination meeting at the National Assembly of the Republic of Korea on the 21st, "I extend my deep respect and gratitude for the broad-minded decision by both labor and management to keep the lines of dialogue open until the end." He added, "I also thank the government for doing its part to make the negotiations possible."
Earlier, Samsung Electronics and its union tentatively agreed to keep the existing cap on over-performance incentives (OPI) while providing an additional uncapped special management performance bonus for 10 years. A full-scale strike had been expected to cause damages of up to 100 trillion won, but the dispute was settled at the last minute. It was reported that Kim Young-hoon, Minister of Employment and Labor (MOEL), stepped in to mediate.
Han said, "This labor-management agreement is highly meaningful not only because it resolves conflict, but because it reduces uncertainty across our economy and industry as a whole." He added, "At a time when the world is engaged in an AI race for supremacy, Samsung Electronics' decision is a valuable achievement that will help preserve market trust and industrial competitiveness."
He continued, "I hope the spirit of coexistence created by Samsung Electronics will spread throughout the broader industrial ecosystem." He pledged, "The Democratic Party of Korea will take the lead in establishing sound labor-management relations through dialogue and compromise."
Jung Cheong-rae, the party leader, also posted on social networking service (SNS) on the 20th after news of the deal broke, saying, "I called Minister Kim Young-hoon to thank him and told him, 'You worked hard. Thank you for your efforts.'" He added that Kim replied, "It turned out really well. I'm relieved."
The People Power Party also issued messages welcoming the agreement once the news broke. Yang Hyang-ja, who began a hunger strike on the 18th calling for a grand compromise between labor and management, ended her fast after four days.
In a statement released that day, Yang said, "I offer my deepest respect for the broad-minded decision made by Samsung Electronics and its union." She added, "I am confident this decision will help expand the territory of South Korea's semiconductor industry and serve as a valuable foundation for making the future of Gyeonggi Province bigger and stronger."
Jang Dong-hyeok warned that the union's swollen demands could erode companies' basic competitiveness, arguing that firms may end up leaving for overseas markets.
In a post on SNS, Jang said, "The labor-management agreement at Samsung Electronics has averted the immediate strike threat, but it is troubling news when we think about the company's sustainability and the future of the South Korean economy." He added, "The logic of the market economy is ruthless. When labor costs soar and regulations tie companies' hands, capital naturally moves to places that are freer and more efficient."
He went on to say, "Samsung is already turning to global hubs such as the U.S. and Vietnam to avoid high costs and regulations, and foreign investors watching this are also shunning the Korean market." He added, "A society that stops growing and focuses only on distribution can never move forward."
haeram@fnnews.com Lee Hae-ram Reporter