The Samsung Electronics Labor Union announced Wednesday its decision to proceed with a general strike starting Thursday, following the collapse of last-minute government-mediated talks that failed to achieve a breakthrough.
Union chief Choi Seung-ho revealed that the union had accepted a mediation proposal put forth by the National Labor Relations Commission. However, negotiations ultimately failed after management neglected to present its official position.
“Despite the union agreeing to the mediation proposal from the National Labor Relations Commission, the post-mediation process concluded as management delayed its decision and failed to articulate its stance,” Choi stated in a press release.
“The union will therefore lawfully commence its general strike tomorrow as scheduled,” he added, confirming the planned industrial action.
Choi emphasized that the union remains committed to reaching a fair agreement and will continue efforts even amidst the ongoing strike.
In response, Samsung Electronics also issued a statement, expressing deep regret over the breakdown of post-mediation discussions. The company firmly asserted that acceding to the union’s demands could fundamentally undermine its core management principles.
“The company deeply regrets the conclusion of the post-mediation process,” Samsung’s statement read.
Samsung reiterated its commitment to resolving the labor dispute through further mediation or direct negotiations with the union, affirming it would not abandon dialogue “until the very last moment” to avert the worst-case scenario.
“A strike must be avoided at all costs,” the company declared.
Samsung contended that a final accord could not be reached because the union continued to insist on what it termed ‘socially unacceptable levels of compensation,’ even for business units operating at a loss. This stance was maintained despite the company having accepted a majority of the union’s proposals regarding performance bonuses.
“This directly contravenes the company’s fundamental principle that compensation must be intrinsically linked to performance,” Samsung emphasized.
The company further cautioned that abandoning this crucial principle could have detrimental effects, not only on Samsung’s operations but also on broader industries and established corporate management practices across Korea.
