A Samsung flag waves at Samsung Electronics' office in Seocho District, Seoul, Sunday. Yonhap
Korea’s six major business associations on Monday expressed their “grave concerns” over a planned general strike by Samsung Electronics’ labor unions, urging the unions to reconsider the move and the government to invoke a compulsory arbitration measure.
In a joint statement, the associations said the strike could “shake the foundation of the country’s key industries,” and that “the unions should withdraw their strike plan and seek to resolve the issue through dialogue.”
Joining the statement were the Korea Enterprises Federation, the Korea Chamber of Commerce & Industry, the Federation of Korean Industries, the Korea International Trade Association, the Korea Federation of Small and Medium Business and the Federation of Middle Market Enterprises of Korea.
The associations said the strike comes at a critical time and could lead to a “national loss of opportunity,” warning it may disrupt production, undermine trust in the global supply chain, drive away clients and damage Korea’s credit standing.
“Given that semiconductor fabrication processes require around-the-clock operation, any suspension of production lines could not only lead to the mass disposal of wafers and damage to equipment, but also pose risks of major safety accidents such as chemical leaks,” the statement read.
The associations said that the unions’ demand to allocate 15 percent of Samsung Electronics’ operating profit to performance bonuses and enshrine this in the collective bargaining agreement is equivalent to “a claim on corporate profits,” noting that court rulings have already found that such bonuses do not constitute wages.
“It is difficult to find cases among global companies where a fixed portion of operating profit is allocated to employees under a prior agreement,” the associations said.
“In general, decisions on how to use operating profit are subject to management judgment of the board of directors. … Excessive demands for performance bonuses could deepen the dual structure of Korea’s labor market and widen social disparity.”
The associations said the government should support negotiations between the company’s labor unions and management, but immediately invoke compulsory arbitration measures if the dispute escalates into a strike, citing the potential damage to the national economy — including thousands of smaller partner companies and others in the semiconductor industry.
Source: Korea Times News
