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With talks between the Samsung Electronics union and company stalled ahead of a strike scheduled for May 21, Trade, Industry and Energy Minister Kim Jung-gwan urged both sides to reach a compromise, warning that a strike would inflict severe damage on the national economy. He also said that if a strike occurs, invoking emergency mediation authority would be unavoidable.
Kim made the remarks on social media on the afternoon of May 14 under the headline, “I earnestly urge Samsung Electronics labor and management to compromise.”
He noted that “the Central Labor Relations Commission requested a resumption of talks, which management accepted, but the union says it sees no reason to continue unless management changes its position. If labor and management cannot reach an agreement and proceed with a general strike beginning on May 21, I cannot help but feel deep regret and concern. I urge both sides to resume dialogue as soon as possible.”
Kim emphasized Samsung’s central role in the economy. “You cannot overstate Samsung Electronics’ importance. Samsung accounts for 12.5% of domestic sales relative to GDP and employs about 129,000 people. It is a national flagship company in which one in ten Koreans holds shares. Samsung’s performance and stock price directly affect people’s lives through some 4.6 million shareholders and pension funds such as the National Pension Service.”
He explained the capital-intensive nature of the semiconductor sector: “The semiconductor industry is winner-take-all, competing on investment ‘speed’ and ‘scale.’ Firms must innovate processes every one to two years, and they cannot survive without massive capital outlays — building a single fab requires more than 60 trillion KRW (about 45 billion USD).”
“Rival countries are expanding their foothold in the semiconductor market through strong government backing and aggressive investment,” he warned. “Once competitiveness is lost, a company doesn’t simply fall to second place — it risks being unable to survive.”
Kim warned that a strike would cause potentially irreversible harm. “A factory shutdown could disrupt production by as much as 1 trillion KRW (about 750 million USD) per day. Wafer processing takes more than five months; if all wafers currently in process were damaged, losses could reach up to 100 trillion KRW (about 75 billion USD). The impact on roughly 1,700 subcontractors would be unimaginable.”
“Given the gravity of this situation and its far-reaching ripple effects, a strike must be prevented under any circumstance,” he said. “As industry minister, I believe emergency mediation would become unavoidable if a strike occurs.”
He appealed directly to company and union leaders: “I urge Samsung Electronics labor and management to resume communication promptly. Management should propose fair compensation, and labor should seek a reasonable distribution that does not undermine the company’s future and sustainability. As a national flagship company, Samsung’s labor and management must live up to the expectations of the public, countless domestic and international customers, and investors.”
Employment and Labor Minister Kim Young-hoon, who oversees labor relations, also repeatedly urged a negotiated solution on social media.
Kim Young-hoon wrote that “democracy means trusting the power of dialogue,” adding, “There is no company without workers, and unions were not formed to destroy companies. From my experience, bargaining during a strike is among the most difficult tasks, because unless a strike is an end in itself, it must be resolved through negotiation.” He stressed the need to settle the dispute through talks.
A senior Labor Ministry official said the government prioritizes resolving the dispute through dialogue rather than immediately invoking emergency mediation authority.
Under the Labor Relations Adjustment Act, the employment minister may decide to invoke emergency mediation authority if workers are judged to be exercising collective action excessively. The Central Labor Relations Commission conducts the mediation. If emergency mediation is invoked, workers must suspend strikes and return to work; they may not strike for 30 days, and failure to comply would be deemed illegal.
Labor groups strongly oppose the use of emergency mediation. The Korea Metal Workers’ Union said in a statement that “the constitution grants workers the right to organize, bargain collectively and take collective action. If the government unilaterally orders a strike suspension through emergency mediation, the Metalworkers’ Union will resist. We cannot accept actions that eviscerate labor’s three fundamental rights.”
Sejong = Lee Won-bae, reporter lwb21@viva100.com
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