Turning Point in Labor-Management Relations with the Abolition of Union-Free Management
[Asia Economy Reporter Ki-min Lee] Samsung Display, an electronics affiliate of Samsung Group, began its first wage and collective bargaining agreement with the labor union on the 26th. This is the first Samsung affiliate labor-management negotiation held since Vice Chairman Lee Jae-yong of Samsung Electronics officially declared the 'abolition of no-union management.' Industry experts analyze that this labor-management negotiation could mark an important turning point in Samsung's labor relations, as it started immediately after Lee's statement to establish a labor-management culture in line with the times. ▶Related article on page 3
On the same day at 10:30 a.m., Samsung Display labor and management began the negotiation with a meet-and-greet at the Tangjeong-myeon town office in Asan, Chungnam. Earlier, the Samsung Display Labor Union under the Korean Metal Workers' Federation officially launched after receiving its union establishment certificate in February, becoming a union that can exercise rights under the Labor Union Act, including collective bargaining. According to the industry and the Federation of Korean Trade Unions, the Samsung Display union has about 2,000 members. Although this accounts for only about 8% of Samsung Display's total workforce of approximately 25,000 employees, it is a relatively large union among Samsung affiliates.
The current negotiation includes seven representatives from management, such as Kim Jong-geun, Samsung Display HR team manager and executive director, group leaders related to HR and labor affairs, and labor attorneys, as well as ten union representatives, including Kim Man-jae, chairman of the Metal Workers' Federation, and Kim Jeong-ran and Lee Chang-wan, co-chairs of the Samsung Display Labor Union. Before fully engaging in the negotiation, the union plans to finalize a basic agreement to guarantee the union executive activities. The basic agreement submitted by the union consists of 11 items, including the provision of union offices, guarantee of full-time union officials, labor-management compliance regarding negotiations, and attendance management of negotiation committee members. The Samsung Display union states that their activities have been restricted so far due to the absence of a basic agreement.
The voluntary retirement of production workers in the large display division is also a key issue in this negotiation. Samsung Display decided in March to operate the 7th and 8th generation LCD production lines in Asan and Suzhou, China, until the end of this year and to halt operations from 2021. Since April, management has been individually proposing voluntary retirement to production workers via phone calls, text messages, and messengers. The union has requested the company three times for a restructuring roadmap but has yet to receive a response. A Samsung Display official stated regarding this year's negotiation, "We will sincerely follow the legally prescribed procedures and establish a healthy labor-management culture."
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