Samsung Electronics Executive Vice President Yeo Myung-gu, left, and Samsung Electronics labor unions leader Choi Seung-ho sign a wage agreement during a ceremony in Yongin, Gyeonggi Province, Wednesday. Courtesy of Samsung Electronics
More than 70 percent of Samsung Electronics’ labor union members on Wednesday approved a tentative wage agreement reached between union leaders and management, bringing a monthslong dispute over performance bonuses to a close, at least for now.
According to the unions, 55,333 of the 57,332 eligible members of the Samsung Electronics Labor Union (SELU) participated in the vote, with 44,606 voting in favor of the agreement, for an approval rate of 80.6 percent. At the National Samsung Electronics Union (NSEU), 7,283 out of 8,261 members voted, with 1,536 approving the agreement, translating to an approval rate of 21.1 percent. The combined approval rate stood at 73.7 percent, surpassing the majority threshold required for ratification.
The tentative agreement was signed on May 20, just hours before the unions were set to stage a general strike the following day. Voting on the agreement was conducted from May 22-27.
“Though there were some disappointments during the wage negotiations, I believe labor and management reached a meaningful agreement after continuing dialogue and discussions over a long period of time,” SELU Chair Choi Seung-ho said during an official signing ceremony of the agreement in Yongin, Gyeonggi Province, following the announcement of the voting results.
“We will continue striving to improve working conditions and protect the rights and interests of Samsung Electronics employees.”
Samsung Electronics Executive Vice President Yeo Myung-gu said labor and management “will work together to strengthen the company’s global competitiveness,” adding, “I would like to thank the labor union and employees for engaging in the negotiations sincerely and not giving up on dialogue until the very end.”
Expressing regret over the controversy surrounding its prolonged labor dispute, Samsung Electronics said in a separate statement that it will raise a 5 trillion won ($3.33 billion) fund over the next five years to invest in fostering "a healthy industrial ecosystem for mutual growth."
The company said it is currently considering measures such as support for smaller partner firms, industrial accident prevention funds and industry-academia cooperation programs, adding that the specific contribution plans will be finalized through discussions with its board and the company’s compliance committee.
The wage agreement centers on a special management performance bonus offered exclusively to employees in the chip-making Device Solutions (DS) division. Under the agreement, the bonus will be funded with 10.5 percent of the company’s operating profit and paid out in treasury shares.
Source: Korea Times News
