Samsung Display at Risk of Labor Strike Amid Deadlocked Wage Negotiations

Samsung Display is facing an increasing risk of a labor strike due to an ongoing deadlock in wage negotiations between the company’s management and its unionized workers. The Korean Times is reporting, the workers have announced plans to file a request for dispute resolution with the National Labor Relations Commission (NLRC) following ten rounds of unsuccessful negotiations. Two years ago, the workers took similar action. The commission-mediated settlement involves an NLRC committee presiding over up to 20 days of mediation to help both parties reach an agreement on labor conditions, such as wages, working hours, and employee benefits. However, if either side refuses the proposed plan, the workers may initiate a strike.

The union claims that Samsung Display’s management is not recognizing the workers’ group as a legitimate negotiating partner. Out of the 26 demands presented by the unionized workers, the management has only accepted two. The company’s management offered a 2% wage increase, which was revised from a previous mid-1% range offer, but the unionized workers have rejected it. While the workers have not provided a specific counteroffer, they consider management’s proposal an insult, as it is much lower than the average annual wage increase of 3.9% they experienced over the past four years. Additionally, the union has called for an increase in the ceiling for payable hours worked for labor-related activities to 11,000 hours per 1,800 workers, while the management has proposed a cap of 7,000 hours.