Samsung Electronics' (005930.KS) labor union has reiterated its determination to push ahead with a general strike next month, warning of a shutdown of semiconductor fabrication plants. The union is planning a general strike from May 21 to June 7 to press its demands for 45 trillion won ($33 billion) in performance bonuses — based on this year's projected 300 trillion won operating profit — and the abolition of the ceiling on performance-based pay.
Roughly 40,000 Samsung Electronics union members held a general resolution rally at the Pyeongtaek Campus on Wednesday, declaring "Struggle Guideline No. 2" and expressing their intent to wage a general strike. Choi Seung-ho, head of the Samsung Electronics chapter of the Supra-Enterprise Labor Union, said, "Union members who have confirmed the guideline should immediately apply annual leave and industrial action to their attendance records during the general strike period." The statement is interpreted as an expression of willingness to halt semiconductor production lines.
The union also played a decisive card by transitioning to a "check-off" system, in which union dues are deducted directly from payroll, in order to maximize strike momentum. Previously, members had transferred dues to the union from personal accounts, but under the new system, the company will deduct dues collectively from wages, meaning each member's union affiliation will be officially reported to the employer.
This is seen as a declaration that union members, who had been hidden behind anonymity, will step forward and engage in real-name struggle, and as a show of organizational strength aimed at making overwhelming union membership numbers visible through concrete data to extract concessions from management. "The check-off enrollment rate in the Device Solutions (DS) division is already approaching 80 percent," Choi said. "We expect check-off participation to reach at least 50,000 to 60,000 people."
The union estimated that the company's losses from the strike would amount to at least 18 trillion won ($13.2 billion). Adding the cost of restoring idled equipment, the total damage would exceed 30 trillion won ($22 billion), the union said. The union also hinted at mobilizing personnel responsible for operating "safety protection facilities" that prevent fires and chemical leaks to join the strike.
Samsung Electronics has filed an injunction with the court, responding that "the normal operation of safety protection facilities is not a matter of labor-management agreement but a legal obligation." Concerns are mounting that if safety facilities are halted at semiconductor plants that handle toxic gases, not only employees but also the broader local community could be exposed to danger.
Meanwhile, Samsung Electronics shareholders have moved to block the strike, saying "a general strike infringes on shareholders' property." Min Kyung-kwon, head of the Korea Shareholder Rights Movement, said near the union rally site in Pyeongtaek, Gyeonggi Province, on the same day, "Workers are people who work, but under the corporate registry, the actual owners of the company are the shareholders who hold stock." He criticized the move, adding, "Halting factories during a semiconductor boom is an act that directly damages shareholder property."
