As Samsung Electronics (005930.KS) labor and management head back to the bargaining table over performance bonuses, warnings about nationwide damage from a general strike are emerging within the union. After a union vice chair made remarks suggesting Samsung Electronics should be eliminated, one union member called for pushing the KOSPI back down to 5,000.
According to industry sources on Tuesday, a member recently posted in the Telegram chat room of Samsung Electronics' Supra-Enterprise Labor Union, saying, "Let's bring the KOSPI down sharply through a strike," and "We will help (President Lee Jae-myung) achieve his goal of KOSPI 5,000." The member added, "With U.S. interest rates rising and the small deal at the U.S.-China summit, stock prices are set to crash on Monday (the 18th), so let's shake things up further so that (foreign investors) can take plenty of profits."
The remarks are seen as a warning that the union will push ahead with a general strike on the 21st if its demands are not met, turning industry and political concerns about massive nationwide damage into reality. The industry warns that if Samsung Electronics' production lines come to a halt and customers and partners are hit by a chain reaction, economic damage could reach as much as 100 trillion won. The American Chamber of Commerce in Korea (AMCHAM) and other U.S. industry groups have voiced similar concerns and warned of the possibility of adjusting supply chains that depend on Samsung Electronics. In response, the government has hinted at the possibility of invoking emergency arbitration powers.
In the chat room the previous day, Vice Chair Lee Song-yi also said, "It's right for us to just eliminate Samsung Electronics," and "If we back down this time, there will be no more Samsung Electronics." She added, "If they want to spin off, let them do it, and we who brought it this far will take responsibility," and "We've followed the law, so we'll do as we please. Let's go to catastrophe."
The union also pushed back against the government's potential invocation of emergency arbitration powers, signaling a hardline stance in the renegotiation. Union Chair Choi Seung-ho said, "When (management) said the union would suffer if it goes to emergency arbitration or mediation, I said, 'Let's stop talking,' and walked out." He added, "They are pressuring us by saying (the union's) damage will be great, but we will not yield."
Samsung Electronics' labor and management will hold another post-mediation meeting at 10 a.m. Tuesday at the National Labor Relations Commission in the Sejong Government Complex, with the government mediating, over performance bonus rules. The union has warned that if negotiations fail to reach an agreement, it will launch an 18-day general strike involving up to 50,000 workers starting on the 21st.
