The head of South Korea's top national advisory body on labor policy has personally stepped in to voice opposition to the planned general strike by Samsung Electronics' (005930.KS) labor union.
According to industry sources on Sunday, Kim Ji-hyung, chairperson of the Economic, Social and Labor Council (ESLC), appeared on a recent YouTube broadcast and said, "I recommend that Samsung Electronics' labor and management seriously consider mediation or arbitration procedures that allow for objective judgment, rather than heading toward the wasteful outcome of a strike." He added, "Samsung is a national company and a leader of the economy, so I am aware there is a view that this issue could extend beyond the dimension of an individual company."
While noting that "it is natural to resolve the performance bonus dispute within a legal framework based on the principle of labor-management autonomy," Kim expressed concern that the strike could negatively affect not only Samsung Electronics but also the broader national economy. Kim also exchanged views on the matter with Samsung Electronics' union members who visited the ESLC in March this year.
The ESLC is a presidential advisory body on labor policy. Kim, who heads the council and is a former Supreme Court justice, has called on the Samsung Electronics union to exercise restraint over the strike. Industry observers said the statement is likely to have some influence on upcoming labor-management negotiations at Samsung Electronics.
The Samsung Electronics union has demanded performance bonuses equivalent to 15 percent of operating profit and the abolition of the bonus ceiling, announcing plans to launch a general strike starting on the 21st of this month.
