Translation result.
[Herald Business=Reporter Lee Tae-hyung] Samsung Electronics’ management and labor failed to reach an agreement during the Central Labor Commission’s (CLC) second day of post-adjustment talks on the 19th — two days before a planned companywide strike.
While the parties reached consensus on most issues, a major disagreement over one key point remained. Officials expect the resumed meeting on the morning of the 20th — the day before the strike — to produce a final decision.
The CLC said it adjourned the second day of post-adjustment talks, which began at 10:00 a.m. on the 19th, at 12:30 a.m. on the 20th.
CLC Chair Park Soo-geun told reporters about the reason for the adjournment: “There are several contentious issues, but we failed to reach agreement on the most important one,” and added, “The company said it would finalize its position and return at 10:00 a.m. today.”
He said the parties had largely agreed on the remaining issues.
Both sides found some common ground on removing the cap on performance bonuses, one of the core disputes. However, they continued to argue late into the talks over how to allocate bonus funds among business divisions and how to institutionalize any agreement.
Reports indicated that management showed flexibility on institutionalizing the agreement, suggesting it could accept a three-year arrangement. Observers say, however, that the parties remain far apart on the division-level allocation ratios.
The union proposes allocating 15% of semiconductor operating profits to performance bonuses, distributing 70% across the entire semiconductor unit and allocating the remaining 30% to individual divisions based on performance.
Management argues that that split contradicts performance-based HR principles and wants to increase the portion paid differentially by division.
With those differences unresolved, Chair Park confirmed the CLC presented a compromise adjustment plan at the meeting.
Park said, “Whether we call it an agreement or an adjustment, it’s the same, so we’ll decide today whether to present it as an agreement or an adjustment,” adding, “Since we couldn’t reach agreement, we’re moving to an adjustment plan, and discussions are temporarily on hold.”
At the resumed session, management will announce whether it accepts the adjustment plan. Park explained that if management accepts, officials will likely finish in the morning so the union can begin a member vote; if talks break down, they will likely finish in the morning to prepare for the strike.
He estimated the union vote would take a day and said, “If things are settled, we will postpone the strike by that amount of time.”
Choi Seung-ho, chair of the Samsung Electronics branch of the Samsung Group’s cross-company union, said, “We will wait here overnight at the CLC to attend the post-adjustment talks.”
Observers interpret that as meaning the ball has moved to management’s court and the union will wait for the company’s response.
Yeom Myung-gu, a company vice president, left the meeting room after the adjournment and only said, “We’ll do our best to finish by the 20th.”
If management rejects the adjustment plan when talks resume, or if management accepts it but union members reject the tentative agreement in a vote, the union is likely to move forward with a strike on the 21st using the dispute rights it has already secured.
However, the government could still invoke emergency mediation powers to halt the strike, as it has signaled previously.
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