SEOUL, March 23 (AJP)-Management at Samsung Electronics and its labor union held an unexpected executive-level meeting Monday, signaling a possible thaw in tensions after the union abruptly canceled a planned rally outside Chairman Lee Jae-yong’s residence.
Vice Chairman Jun Young-hyun, who leads the critical Device Solutions (DS) division, met a four-member delegation from a joint protest committee that includes representatives of the National Samsung Electronics Union (NSEU).
During the 90-minute meeting, Jun acknowledged employee grievances and proposed resuming formal negotiations, according to a union statement.
“I am aware of the employees’ complaints, and we have arranged this meeting with the labor union to resolve them,” Jun said, adding the company is prepared to discuss key demands at the bargaining table.
The union reiterated its preconditions for talks: scrapping the 50 percent cap on the Overall Performance Incentive (OPI) and overhauling the bonus system to improve transparency. It has strongly opposed the current use of Economic Value Added (EVA) as a benchmark, calling instead for metrics tied to operating profit.
Jun signaled openness to reviewing the demands but cautioned that bonus allocation across semiconductor business units requires careful consideration. He also proposed a follow-up meeting in the near term.
The dialogue came just hours after the union called off a press conference and rally planned outside Lee’s home in Seoul, citing “internal reasons,” in a move widely seen as lowering immediate tensions.
Still, the risk of industrial action remains.
The union recently secured legal strike rights after 73.5 percent of its roughly 90,000 members backed a walkout. It has threatened an 18-day general strike from May 21 to June 7 if negotiations fail. A mass rally involving about 9,300 members is scheduled for April 23 in Pyeongtaek, home to Samsung’s flagship chip plants.
A strike would mark only the second in the company’s history, following a walkout in July 2024. Industry observers warn that any prolonged disruption could weigh on semiconductor output at a pivotal moment, as Samsung races to capture surging global demand for AI memory chips.
Copyright ⓒ Aju Press All rights reserved.
