A South Korean court has partially granted Samsung Electronics' (005930.KS) injunction request against its labor union's planned strike. While the court did not prohibit the strike itself, it ordered the union to maintain safety facilities and product protection operations at normal levels, taking into account the unique nature of semiconductor manufacturing.
The Suwon District Court's 31st Civil Division, presided over by Senior Presiding Judge Shin Woo-jung, on Tuesday partially granted Samsung Electronics' application for an injunction against illegal industrial action filed against the Samsung Electronics chapter of the Samsung Group Supra-Enterprise Labor Union and others.
"The respondents bear the obligation to ensure that safety protection facilities are maintained and operated with the same level of personnel, operating hours, operating scale, and duty of care as on ordinary weekdays, weekends, or holidays prior to the industrial action, even during the industrial action," the court stated. The court also ruled that operations to prevent wafer deterioration and damage to manufacturing facilities qualify as security work under the Trade Union Act, requiring them to be performed at normal levels even during the strike.
The court also ordered the union not to occupy company facilities. "The specific methods of the occupation ban shall be set, as argued by the company, as a prohibition on occupying all or part of the facilities, installing locking devices, and obstructing workers' access," the court explained.
The ruling also included indirect enforcement provisions to ensure the union's compliance. Under these provisions, each union must pay Samsung Electronics 100 million won per day of violation, while Choi Seung-ho, chapter leader, and Woo Ha-kyung, acting committee chair, must each pay 10 million won per day. With the court accepting a substantial portion of the company's demands, the union's strike methods are expected to face significant legal constraints.
The union has announced a general strike for Friday. Samsung Electronics' labor and management held their final pre-strike negotiations over the performance bonus dispute on Tuesday morning at the Sejong Government Complex, where the National Labor Relations Commission is located, under government mediation. The union is demanding the abolition of the performance bonus cap, currently set at 50% of annual salary, and that 15% of operating profit be secured as the funding source for performance bonuses, with these terms codified in the collective bargaining agreement. The company, on the other hand, has indicated it could provide special rewards exceeding those of competitors if it achieves industry-leading status, but opposes institutionalizing the abolition of the performance bonus cap.
