| Figure 1Samsung Electronics' unionized workers protest what they claim are illegal wage negotiations held between management and a labor-management council in front of the Seoul regional employment and labor administration, Monday / Newsis |
By Kim Hyun-bin
Unionized workers at Samsung Electronics filed a complaint with the labor authority regarding management's decision to raise employee wages without consulting with laborers, claiming the company aims to “revive its non-union management” policy during a press conference in front of the Seoul regional employment and labor administration, Monday.
"The labor-management council's negotiations are illegal, in violation of Article 33 and Article 5 of the Workers' Participation Act,” the union said. "The company announced a 9 percent wage increase and three days of paid leave, but in reality, most employees will receive a 5 percent salary increase. The employees are outraged by the company's lies."
Under the country's labor law, the labor-management council has the authority only to discuss workplace conditions with the company on behalf of employees. The group stressed that the collective bargaining right for wages rests with the union.
The union also questioned the legitimacy of the labor-management council's election process.
"The labor-management council, elected to suit the company's tastes, does not represent all 110,000 Samsung Electronics members,” the union said. "Since last year, we have been patient and tried as much as possible to reach a settlement of wage negotiations through dialogue with the company, but the company is forcing the union to protest."
After the press conference, the union immediately submitted a complaint to the Seoul regional employment and labor administration against the wage negotiations between Samsung Electronics' management and labor-management council.
Samsung's unionized workers, who account for around 4 percent of the total 110,000 employees, have been engaged in wage negotiations with management since October last year.
The two parties have so far held 19 rounds of negotiations, but failed to iron out their differences despite arbitration efforts by the National Labor Relations Commission.
The unionists have been demanding an annual salary raise of 10 million won ($8,155) per employee, full disclosure of its incentive system and abolishment of its peak wage system, which reduces salaries gradually for several years before retirement.
Despite the union's protest, Samsung Electronics has been discussing wages with the labor-management council for the past several decades.
Even after Samsung Electronics Vice Chairman Lee Jae-yong announced the abolishment of the company's union-free management policy in May 2020, Samsung has continued with wage negotiations with the labor-management council.
Samsung Electronics' management and labor-management council agreed to an average 9 percent pay raise for the year, ending 11 rounds of negotiations that were held since February.
The wage hike is about 1.5 percentage points higher than the 7.5 percent wage hike in 2021, making it the highest raise in a decade.
Samsung employees initially demanded the tech giant raise their annual wages by more than 15 percent. But both sides reached a compromise due to the increase in global uncertainties.
The two sides also agreed to add three more days of paid leave and extend the period of paternity leave from 10 days to 15 days to improve the work-life balance of employees, the company said.