Samsung Files Court Action to Prevent Union Disruption
Synopsis
Key Takeaways
Seoul, April 16 (NationPress) Samsung Electronics has initiated legal proceedings by requesting a court injunction to preempt potential collective actions from its labor union that might interfere with production, industry insiders reported on Thursday.
The company lodged this legal appeal with the Suwon District Court earlier today, aiming to prevent the union from taking over crucial facilities, including semiconductor production lines, which could lead to considerable operational setbacks, according to Yonhap news agency.
Samsung Electronics clarified that its pursuit of a preliminary injunction is not aimed at curtailing the union's constitutionally protected rights to engage in labor disputes; instead, it seeks to prevent actions that are strictly forbidden by law and to mitigate potential operational losses.
Previously, the unionized workforce at Samsung Electronics declared plans for a general strike scheduled for May 21.
The two parties had commenced wage negotiations last month but quickly suspended discussions following disagreements over lifting a cap on performance-based bonuses.
The union has demanded that the company allocate 15% of its operating profits towards bonuses.
In the first quarter, Samsung Electronics reported an operating profit of 57 trillion won ($38.7 billion).
In March, union members announced the suspension of negotiations with management just three days after they had resumed. Choi Seung-ho, head of the Samsung Electronics unit at the Samsung Group United Union (SGUU), stated, "We have decided to halt negotiations, citing management's lack of sincerity, and will seek a ruling from a local labor arbitration commission."
While the two parties could not agree on removing the cap on bonuses, the union indicated a possible return to discussions, asserting that the suspension does not signify a complete breakdown in talks, as noted in the minutes of the negotiations shared on its website.
The unionized workers are advocating for the removal of the bonus cap and a 7% wage increase, along with enhanced transparency in calculating performance-related bonuses.