Samsung Electronics has filed for a court injunction to prevent potential collective action by its labor union that could disrupt production. The company made this legal request with the Suwon District Court to avoid significant operational losses by stopping the union from occupying crucial facilities like semiconductor production lines. Samsung Electronics clarified that the injunction aims to prevent actions prohibited by law and safeguard against operational losses while respecting the union’s right to engage in labor disputes.
Unionized workers of Samsung Electronics had announced plans for a general strike on May 21 after wage talks stalled due to disagreements over removing a cap on performance-based bonuses. The union demanded that the company allocate 15 percent of its operating profit to bonuses. Despite Samsung Electronics reporting 57 trillion won ($38.7 billion) in operating profit for the first quarter, negotiations between the two sides faced challenges, leading to a suspension of talks.
The union cited management’s lack of sincerity as the reason for breaking off negotiations and seeking a ruling from a local labor arbitration commission. The main point of contention was the removal of the cap on performance-based bonuses. While talks were suspended, the union hinted at a possible resumption, emphasizing that the suspension did not signify a breakdown in negotiations. The unionized workers have been advocating for the removal of bonus caps, a 7 percent wage increase, and increased transparency in bonus calculations.
