The Samsung Electronics (005930.KS) labor union has been recognized by the government as a majority union, removing one obstacle to its planned general strike. Analysts say the likelihood of a strike at Samsung Electronics — over which cabinet ministers have publicly expressed concern — has significantly increased.
According to data submitted to the National Assembly on Thursday, the Gyeonggi Regional Employment and Labor Office of the Ministry of Employment and Labor notified both management and labor that day that "the Samsung Electronics Branch of the Samsung Group Supra-Enterprise Labor Union is a labor union organized with a majority of the workers employed at Samsung Electronics." Since February, the Gyeonggi office has been examining whether the Samsung Electronics Branch qualifies as a majority union, sending multiple inquiries to both sides and conducting on-site investigations.
The decision signifies that the Samsung Electronics Branch has secured legal representative status to push ahead with a strike. For a union to strike legally, it must go through procedures including a mediation suspension decision by the Labor Relations Commission and a membership vote. However, majority union status is considered a core requirement that supports the union's representativeness and legitimacy in the course of industrial action. With the union obtaining legal confirmation from the government ahead of a strike at a semiconductor workplace — a matter of broad public concern — its hand is expected to be strengthened in future negotiations and industrial action.
The Samsung Electronics Branch has announced a general strike from May 21 to June 7, demanding performance-based bonuses equivalent to 15 percent of annual operating profit. Management has countered that the union's demands are excessive, and no common ground has yet been reached between the two sides.
The government has taken the unusual step of voicing public concern, given that a strike at Samsung Electronics could affect not only the semiconductor industry but also the broader national economy. Industry, Trade and Energy Minister Kim Jung-kwan said on the 27th, "In such a grave situation, I cannot even imagine a strike," adding, "Once semiconductors lose their competitive edge, it takes a long time to recover." Employment and Labor Minister Kim Young-hoon also stressed, "Today's results were achieved through the combined efforts of partner companies, local communities, the government, and even small investments from the public."
Whether the Samsung Electronics strike proceeds will depend on last-minute negotiations between labor and management and on a court ruling. The court is scheduled to issue a decision between the 13th and 20th of next month on Samsung Electronics' injunction request seeking to bar the union from illegal industrial action.
