Min Kyung-kwon, second from left, head of Samsung Electronics' individual shareholder group, the Republic of Korea Shareholder Activism Headquarters, speaks during a press conference at the National Assembly in Seoul, Thursday. Newsis
Individual shareholders of Samsung Electronics are raising their voices against a planned strike by the company's labor unions, warning of legal action if the walkout violates the law and causes damage.
A Samsung Electronics individual shareholder group, whose name roughly translates in English to the “Republic of Korea Shareholder Activism Headquarters,” said Thursday that it will take “stern shareholder actions” against the unions, while urging lawmakers to increase efforts to protect shareholders’ rights.
“If an illegal strike takes place or management reaches an unfair agreement with the unions, we will take comprehensive shareholder actions,” Min Kyung-kwon, head of the group, said during a press conference at the National Assembly in Seoul.
“If excessive strike actions by the unions damage the company’s core assets, shareholders will coordinate through online platforms and respond firmly.”
The warnings came in response to the unions' plan to launch a massive strike May 21 demanding the company remove a cap on performance-based bonuses and allocate bonuses equal to 15 percent of annual operating profit. If their demands are met, the company could pay around 45 trillion won ($31 billion) in bonuses this year alone.
Through multiple rallies since last month, the shareholders' group has argued that the union's strike threat and bonus demands will undermine the competitiveness of not only Samsung Electronics but also the Korean economy as a whole. The group said if any illegal activities during the strike damage the company’s assets and harm shareholder value, shareholders will jointly seek damages from all union members for infringing on their third-party rights.
The group also said it would file shareholder derivative suits against management if the company reaches what it described as “unfair agreements” with the unions in an attempt to avoid conflict, arguing that such moves would seriously infringe on shareholders’ dividend rights.
“Samsung Electronics’ massive semiconductor achievements do not belong solely to management, labor unions or shareholders,” Min said. “They are the collective result of Korea as a whole, built on enormous support from the national power grid and government policies, as well as the hard work and dedication of partner companies.”
He added: “Under market economy principles, there should be a way for a single company’s achievements not to be monopolized selfishly, but to circulate in a virtuous cycle through partner companies, national infrastructure and shareholder returns."
Source: Korea Times News
