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Samsung Electronics Labor Talks to Become Clear by 10 p.m.; Mediator Says He Will Present Proposal if No Deal

Source
Korea Economic Daily

Summary

  • In the second round of post-dispute mediation between Samsung Electronics and its union, Chairman Park Soo-geun said he would present a mediation proposal if no agreement is reached.
  • He said that if the company accepts the mediation plan presented by the labor commission, the union will hold a membership vote to decide whether to approve it.
  • He said that if the membership vote is rejected, the negotiations would be considered collapsed and could move toward a strike and other forms of labor action.

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Photo: PJ McDonnell/Shutterstock
Photo: PJ McDonnell/Shutterstock

Park Soo-geun, chairman of the Central Labor Relations Commission, which is solely overseeing the post-dispute mediation between Samsung Electronics Co. and its union, said the outcome should become clear around 10 p.m. He said there would either be an agreement, a mediation proposal or a decision on whether to accept one.

His remarks indicate the commission will present its own mediation proposal if the two sides fail to reach a voluntary agreement after completing internal reviews.

Park made the comments at about 7:20 p.m. during a recess in the second round of post-dispute mediation at the government complex in Sejong. The commission will wait until around 10 p.m., or as late as 10:30 p.m., for labor and management to finish their internal discussions before putting forward a mediation proposal if no agreement is reached.

The labor commission had already presented the company with a mediation plan on the afternoon of May 19 to help the two sides reach a voluntary settlement. “The company has to accept it, and then it has to be put to a vote of union members,” Park said. If the company refuses, he added, there are several possible scenarios, including not holding a membership vote.

If the two sides cannot strike a voluntary deal, Park will formally present a mediation proposal and labor and management will decide whether to accept it. Asked what would happen if union members reject the proposal, he replied: “The negotiations end, and then there is a strike.”

The union will put any tentative agreement or mediation proposal to a membership vote. If approved, labor and management will move to finalize the agreement. If rejected, the talks will be regarded as collapsed, making labor action including a strike more likely.

Asked whether the post-dispute mediation would continue through May 20, Park said that would only be known around 10 p.m.

Samsung Electronics and the union had originally planned to continue the post-dispute mediation until 7 p.m. on May 19. But the talks were extended after the commission presented its mediation plan to the company and management began internal deliberations.

Kwak Yong-hee and Won Jong-hwan, Hankyung.com reporters, kyh@hankyung.com

Korea Economic Daily

Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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