Samsung Electronics (005930.KS) and its labor union returned empty-handed from last-minute talks held ahead of the union's strike scheduled for the 21st. The two sides failed to narrow their differences enough to even request a mediation proposal from a third-party institution.
The National Labor Relations Commission (NLRC) said on the 13th that post-mediation between Samsung Electronics' labor and management ended at around 2:50 p.m. the same day. The NLRC stated, "If both sides agree and request additional post-mediation, we can provide support for additional post-mediation at any time." The NLRC is the higher-level labor relations body that resolves labor-management conflicts.
The post-mediation, which began on the 11th and continued into the early hours of the day, revealed wide gaps between the two sides over the performance bonus payment method. Before the post-mediation began, management said it would use more than 10 percent of operating profit as a performance bonus fund if the company achieves the No. 1 position in Korea, and guarantee treatment for the memory division exceeding that of SK hynix (000660.KS). The union, on the other hand, maintained its demand for the complete abolition of the performance bonus ceiling and the use of 15 percent of operating profit as a funding source.
Choi Seung-ho, head of the Samsung Electronics branch of the National Samsung Electronics Union, told reporters after the post-mediation breakdown: "After we demanded a mediation proposal from management and waited 12 hours, the proposal they presented was actually a step backward. They only offered a special management performance bonus for the Device Solutions (DS) division limited to 2026, without even institutionalizing it."
Typically, labor and management participating in post-mediation request a mediation proposal as a matter of custom. This is because neither side is obligated to follow such a proposal. However, Samsung Electronics' labor and management failed even to produce a mediation proposal. The NLRC explained, "The gap between the two sides' positions was wide, and the union requested a halt to the post-mediation. We decided to end the post-mediation without presenting a mediation proposal."
The union plans to launch a general strike starting on the 21st. The estimated damage from the general strike is being cited at approximately 30 trillion won.
