Samsung Electronics Labor Negotiations Collapse; Union to Strike on 21st

(CNA, Seoul, 20th, by reporter Yang Chi-fang) The second round of post-mediation procedures between labor and management at South Korea's Samsung Electronics ended in a breakdown today at noon after several days of negotiations. Samsung Electronics refused to accept the adjustment plan proposed by the National Labor Relations Commission, and the union announced it will proceed with a full-scale strike tomorrow. According to Yonhap News Agency, the two parties began the second round of post-mediation procedures on the 18th. Yesterday's meeting lasted from 10 a.m. until 12:30 a.m. today. After a recess, negotiations resumed at 10 a.m. this morning. However, around noon, the National Labor Relations Commission announced the mediation had failed. The Commission stated it had presented an adjustment plan to both sides. The labor side accepted it, but the management side maintained reservations and did not sign, thus the second post-mediation adjustment failed. The Commission relayed a statement from its chairman, Park Soo-geun, saying, 'If both parties reach a consensus and request post-mediation again, we will initiate the process at any time to assist in labor-management negotiations.' The Samsung Electronics union stated that around 10 p.m. last night, the union had agreed to the Commission's adjustment plan, but management expressed its refusal. The union pointed out that last night, just before the Commission was about to declare the negotiations a failure, management's negotiator, Yeo Myeong-gu, withdrew the refusal and requested more time, extending the negotiations to a third day (today). The union noted, 'Management just repeatedly said 'a decision has not yet been made' and never took a clear stance, and finally, under the auspices of the National Labor Relations Commission, the post-mediation process was declared over.' The union emphasized that it will proceed with a full-scale strike tomorrow as planned by law, stating, 'Even during the strike period, we will not stop striving to reach an agreement.' Samsung Electronics issued a statement saying the union demanded compensation for loss-making business units on a scale that is socially unacceptable. 'The post-mediation failed to reach an agreement until the very end because accepting the union's excessive demands as they are could shake the fundamental principles of the company's management.' Samsung stressed that even though the company had accepted most of the performance bonus scale and content, the union insisted on providing compensation on a socially intolerable scale for loss-making divisions, which violates the company's basic management principle of 'reward for performance.' 'If this principle is abandoned, it could have a negative impact not only on our company but also on other companies and the industry as a whole.' However, management stated it will continue to make last-minute efforts to resolve the issue through additional mediation or direct dialogue with the union, emphasizing, 'No matter what.'