Samsung Electronics, Union Reach Tentative Wage Deal; Strike Put on Hold

Samsung Electronics Co. and its labor union reached a tentative wage agreement on May 20, the night before a planned general strike. The union said it would put the walkout on hold.

Yonhap News reported that Samsung management and the union signed the tentative agreement that afternoon at the Gyeonggi Regional Employment and Labor Office in Suwon. If union members approve the deal, a labor dispute that has lasted more than five months since December could be resolved.

The joint struggle headquarters of Samsung Electronics' labor union said in guidance sent to members after the agreement that the general strike planned for May 21 through June 7 would be put on hold until further notice.

The union plans to hold a vote on the tentative agreement from 2 p.m. on May 22 to 10 a.m. on May 27. The deal will only qualify as an agreement if it is approved in the vote.

Choi Seung-ho, head of the Samsung Electronics branch of the Samsung Group labor union federation, apologized for causing public concern over internal conflict. He also thanked the government, related officials and union members for their efforts.

Yeo Myung-gu, vice president and head of the people team at Samsung Electronics' Device Solutions, or semiconductor, division, said the tentative agreement should serve as a starting point for creating a more productive labor-management culture. The company will faithfully carry out the agreement and make every effort to promote coexistence between labor and management, he added.

The presidential office said the tentative agreement related to performance-based pay reflected a broad decision by labor and management for the good of the country and the public.