Samsung Electronics (005930.KS) and its union are clashing again just one day before their second post-mediation session, as the company stands at a critical crossroads following the government's signaling of possible emergency mediation. The two sides held informal meetings on consecutive days ahead of the mediation, but the union said the company pressured it with terms that retreated from the existing mediation proposal, adding that an agreement may be impossible in the worst case.
According to Choi Seung-ho, chairman of the Samsung Electronics chapter of the Supra-Enterprise Union, the two sides held a preliminary meeting on the 16th, followed by an informal meeting on the 17th at the request of Yeo Myung-gu, executive vice president and head of the People Team at Samsung Electronics' Device Solutions (DS) division.
According to the union, Samsung Electronics urged an agreement by presenting a proposal that retreated from the existing post-mediation plan from the National Labor Relations Commission (NLRC). "The company asked, 'Can you accept terms that have retreated from the post-mediation proposal?' and demanded, 'Can't this be resolved through the chairman's leadership?'" Choi said. "I clearly conveyed that this is unacceptable and that we will not agree if the same stance is maintained at the post-mediation session on the 18th."
The union claimed that "the company raised the possibility of the government invoking emergency mediation" and "pressured us by saying that the union would face difficulties if the matter went to emergency mediation and arbitration." Choi said, "I will not yield. I told them to stop talking, halted the meeting and left."
The proposals from both sides released by the union show clear differences in the funding source for performance bonuses and the application period. On the 12th, the NLRC had proposed: applying 20% of economic value added (EVA) as the basis for the Overall Performance Incentive (OPI), while maintaining the 50% upper limit; allocating 12% of operating profit as a special reward fund when the DS division achieves the top spot in revenue and operating profit (split 7:3 between division-wide and individual business units); and continuing application when similar performance is achieved in 2026 and beyond.
In contrast, the proposal newly presented by the company at the meeting on the 17th was scaled back in both the size and continuity of the special reward. The company's conditions were: applying either 10% of operating profit or 20% of EVA as the OPI basis; reducing the special reward fund to 9-10% of operating profit when the DS division's operating profit exceeds 200 trillion won (split 6:4 between division-wide and individual business units); and maintaining the application period for three years before renegotiation. The proposal shifted from permanent application to a "three-year sunset" arrangement, while also reducing the share of the compensation fund — terms the union finds difficult to accept.
As emotions deepen between labor and management one day before the post-mediation session, a rough road is expected at the NLRC meeting on the 18th as well. Should this post-mediation also end in final breakdown, the likelihood that the government will actually invoke emergency mediation is expected to grow further amid concerns over disruptions to semiconductor production and a global supply chain crisis. If emergency mediation is invoked, industrial actions including strikes will be immediately banned for 30 days, and the NLRC will issue a binding arbitration ruling on its own authority.
