A prominent Samsung Electronics shareholder group issued a stern warning Wednesday, threatening legal action against union members if a planned strike causes damage to the semiconductor giant’s critical assets. This comes as the company’s largest union intensifies pressure on management to allocate 15 percent of operating profit towards performance bonuses for employees.
The Korea Shareholder Action Headquarters, expressing strong opposition to the union’s proposed walkout, staged a protest near Itaewon-ro in Yongsan-gu, Seoul, starting at 8 a.m., according to informed industry sources. Banners displayed during the demonstration highlighted their concerns.
This protest follows a public appeal made by the group on Tuesday, addressing what they termed a looming “strike crisis” at Samsung Electronics. In their statement, shareholders affirmed their intent to pursue legal action should the union proceed with an unlawful strike, or if management agrees to what the group considers an improper settlement.
One banner ominously declared, “The outcome of a ruinous Samsung union strike is undeniable; public sentiment has already turned against it.”
Another banner underscored the severe implications of any disruption, stating that a strike impacting vital semiconductor processes would be “more catastrophic than actions by the military or police,” advocating for legislative measures to prohibit walkouts that could jeopardize the national economy.
These warnings emerge as the Samsung Electronics Labor Union, representing over half of Samsung Electronics’ workforce, escalates its demands for improved wages and incentives from company management.
The union’s key demands include a 7 percent increase in base pay, the removal of existing caps on performance bonuses, and the dedication of 15 percent of operating profit to a bonus pool. They have announced plans for an 18-day general strike commencing May 21 if their demands are not met by the company.
Industry analysts have cautioned that a widespread strike could lead to substantial financial losses, potentially reaching up to 30 trillion won (approximately $20 billion), though the ultimate impact would hinge on the duration and scale of the industrial action.
Reiterating its stance, the shareholder group’s Tuesday statement confirmed its intention to seek damages from all union members if any unlawful strike leads to damage to Samsung Electronics’ crucial assets.
“Samsung’s semiconductor production lines are sophisticated, ultra-precision facilities requiring continuous, 24/7 operation,” the group emphasized. “Even a brief interruption could necessitate the disposal of tens of thousands of wafers, incurring immense recovery costs.”
The shareholder group strongly urged the union to abandon any plans for a walkout that might disrupt production. Furthermore, it cautioned Samsung Electronics’ management against conceding to the union’s demand for a bonus scheme directly tied to operating profit.
The group also indicated it might initiate a shareholder derivative suit under the Commercial Act, even in the absence of a strike, if management enters into what it deems an unfair performance bonus agreement merely to alleviate short-term union pressure.
yeeun
