[Exclusive] Concerns Over Samsung Electronics Logistics Disruption, Pyeongtaek Logistics Center Strike Imminent

[Asia Economy Reporters Changhwan Lee, Dongwoo Lee] A labor dispute has erupted at the Pyeongtaek Comprehensive Logistics Center (CDC), which handles a significant portion of Samsung Electronics' domestic logistics for home appliances, entering the final countdown to a strike. If the strike materializes, the delivery of Samsung Electronics home appliances could be partially halted.

According to related industries on the 21st, the labor union of Samsung Electronics Logitec subcontractors (Inseong GLC), responsible for storage and cargo handling at the Samsung Electronics Pyeongtaek Comprehensive Logistics Center, is holding a strike vote until 6 p.m. that day.

The labor-management conflict intensified as Inseong GLC labor and management faced difficulties in recent wage and collective bargaining negotiations. The union plans to hold a strike vote from the day before until the 21st to decide whether to strike. So far, the majority of union members support the strike, making the possibility of a strike high.

Completed in 2018, the Samsung Electronics Pyeongtaek Comprehensive Logistics Center handles logistics for most Samsung Electronics home appliances such as TVs, refrigerators, and air conditioners. Along with the Gwangju and Suwon logistics centers, it is a large logistics center covering the entire country. If a strike occurs at the Pyeongtaek Comprehensive Logistics Center, significant disruptions could occur in the delivery of Samsung Electronics home appliances.

The logistics center is managed by Samsung Electronics Logitec, a 100% subsidiary of Samsung Electronics. Samsung Electronics Logitec entrusts storage and cargo handling tasks to several partner companies like Inseong GLC by region. This labor dispute is understood to have occurred only at the Pyeongtaek Comprehensive Logistics Center.

The union at the workplace claims that when renewing the contract with Samsung Electronics Logitec last year, the volume unit price was significantly cut, lowering wages to near minimum wage levels, and demands normalization of unit prices and wage increases.

Regarding this, Inseong GLC, the partner company, promised some improvements in treatment but faced difficulties reaching a labor-management agreement. As wage and collective bargaining negotiations stalled, the union filed a dispute with the Gyeonggi Regional Labor Relations Commission last week.

The union also demands that the primary contractor, Samsung Electronics Logitec, take a more active role. There are claims that Samsung Electronics Logitec, fearing logistics disruptions as the strike approaches, has reassigned some logistics volume allocated to Pyeongtaek to other centers, worsening the situation.

A union official said, "Although the strike is imminent, the union does not want to fight unconditionally with the primary contractor or management," adding, "We hope for a smooth resolution regarding treatment improvements and volume allocation."

Samsung Electronics stated, "Since this is an internal issue of the partner company, it is difficult to intervene directly," but added, "If the strike actually proceeds, logistics operations could be disrupted, so we hope labor-management negotiations go well."