[Asia Economy Reporter Jeong Hyunjin] The Samsung Display labor union is expected to discuss on the 10th whether to proceed with industrial actions in the future, as they have failed to narrow differences with the company despite resuming wage negotiations after about a month.
On the same day, the Samsung Display union plans to hold an executive and delegate meeting in the afternoon to discuss the company's final proposal presented the previous day. If the final proposal is accepted, a decision process through a vote of all union members will follow. If rejected, discussions on industrial actions such as strikes will proceed based on the secured right to take industrial action.
Samsung Display labor and management held the second round of wage negotiations at the Korea Federation of Trade Unions Chungnam-Sejong Regional Headquarters the day before. During the negotiations, the company conveyed to the union through the final proposal that it "cannot accept the demands." It was reported that the company cited business difficulties caused by the COVID-19 pandemic and other factors as reasons for being unable to accept demands that would incur additional costs.
In response, the union stated, "The company maintained its previous position. We are very disappointed," and added, "We will prepare to properly exercise our right to industrial action." The union has already received 91% support in a strike vote among members and secured the legal right to strike following the Ministry of Employment and Labor's 'mediation suspension' ruling last month.
Previously, Samsung Display labor and management had been conducting wage negotiations for three months since February, but the union declared a breakdown at the end of April in protest against the company's negotiation attitude. Subsequently, the two sides resumed negotiations after about a month following a meeting between Samsung Display President Choi Joo-sun and the union co-chairpersons on the 25th of last month, and held two meetings until the day before, but failed to reach a result.
The union is demanding a 6.8% increase in base pay and improvements to the performance bonus system based on last year's results. Meanwhile, the company maintains that it cannot accept anything beyond the 4.5% base pay increase decided through the labor-management council.
Accordingly, the possibility of the Samsung Display union engaging in strikes or other industrial actions is increasing. If an actual strike occurs, it would be the first strike case among Samsung Group affiliates since Vice Chairman Lee Jae-yong of Samsung Electronics declared the end of 'no-union management' last May. The Samsung Display union, launched under the Korea Federation of Trade Unions in February last year, currently has about 2,400 members, accounting for approximately 10% of all employees.
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