Jun Young-hyun, CEO of Samsung Electronics (head of the DS division and vice chairman) [Photo: Samsung Electronics]

Samsung Electronics' executive team issued a public apology over a protracted labor dispute. Vice Chairman and CEO Jun Young-hyun (전영현) and President and CEO Roh Tae-moon (노태문), along with 15 other executives including Kim Su-mok, Kim Yong-kwan and Kim Woo-joon, released a joint apology on Thursday, bowing their heads and saying, "We have caused a great burden and worry to the public and the government due to labor-management issues." The executives said, "As achievements grow, society's expectations of Samsung become stricter, but we failed to properly look after that."

In the apology, the executives said the company cannot waste time on internal issues. They described the union as "one family and a community of shared destiny" and urged unconditional talks. They also added a pledge to become an unwavering pillar of the national economy through sound management, constant technological innovation and bold future investment.

Earlier, the company sent an official letter to Samsung Electronics' branch of the Samsung Group Inter-Company Union. It said it again proposed meeting and holding talks without conditions. The letter stressed that during mediation by the National Labor Relations Commission in March, it had already presented a plan to choose OPI funding from either 10 percent of operating profit or economic value added (EVA).

On the union's demand to scrap the cap and institutionalise the system, the company said it had proposed a flexible plan to keep the existing OPI while newly adding a special compensation system with no cap. The union sent an official letter to the company on Wednesday demanding that it present specific proposals on key agenda items such as OPI transparency, scrapping the cap and institutionalisation by 10 a.m. on Thursday.

In response to the company's reply, Choi Seung-ho (최승호), head of the inter-company union, said, "I am willing to discuss after June 7," and "I intend to properly exercise rights guaranteed by the constitution." With the union's announced strike schedule running from May 21 to June 7, the remarks appear to suggest it will press ahead with the strike. The union also said on Thursday it did not believe mediation by the National Labor Relations Commission was possible, and it released recordings of talks with mediators during post-mediation.

Signs of a rift are also being detected within the union ahead of the strike. Union members in the DX (device experience) division began steps to file an injunction request demanding a halt to bargaining, complaining that the DS-focused inter-company union is concentrating only on the fight over DS performance pay. Hundreds have expressed an intention to join, and they are also raising funds for legal costs. They plan to select a law firm and finalise detailed demands.

If the injunction request is filed, the inter-company union will face a double legal risk. Samsung Electronics has earlier filed an injunction seeking to ban illegal industrial action, citing reasons including maintaining semiconductor safety protection facilities, preventing wafer deterioration and preventing occupation of workplace facilities. The Suwon District Court plans to reach a conclusion by May 20, one day before the strike begins. An application by DX members challenges bargaining rights themselves, and analysis suggests it could have a bigger impact on strike momentum.

Choi's position on claims that DX is being neglected is to first expand the performance-pay pool this year and then allocate more compensation to DX next year. On the injunction request, he said, "We plan to carry out lawful industrial action," and claimed up to 50,000 union members could take part in the strike.

Keyword

#Samsung Electronics #OPI #EVA #National Labor Relations Commission #Suwon District Court
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