As I’ve been reporting, Samsung’s largest union, the 30,000+ member strong National Samsung Electronics Union (NSEU), has launched a strike against one of the largest employers in all of South Korea. This is not a common occurrence anywhere in Asia, and it is the first major strike Samsung has ever experienced.
Now, after two weeks of continuous work stoppage, Samsung management finally indicated to the union that it was interested in restarting the negotiations – a big win for union leaders.
See more on the first-ever union-directed work stoppage at Samsung
The Bloomberg news agency is reporting that after two weeks of continuous work stoppage, with negotiations at a standstill, things were looking bleak. Then, on the eve of the start of week three of the strike, Samsung management finally reapproached the union and agreed to restart the negotiations.
A Big Win for Union Management
This is a big win for the union leadership, which had both called for the strike and convinced thousands of its members to walk off the job without pay. Then management stiff-armed the union by declining to continue negotiations after an early round of discussions failed to find any common ground.
However, both sides are feeling pressure to resolve the matter as quickly as possible. In the case of the union, the financial hardship felt by the membership incrementally increases over time. In the case of Samsung, the company has seen its chip division fall behind competitors – and the work stoppage only serves to delay its ability to get back on track to catch up with its competitors.
Concern Strike May Spread to Even More Samsung Facilities
Samsung is also concerned over the possibility that the union may seek to further rachet up the pressure by expanding the strike to more Samsung facilities, which will further cut production and impact the company’s financial performance. It’s clear that both sides have a vested interest in concluding the strike and getting the thousands of participating NSEU members back onto the production line.
According to Bloomberg, the first step for re-engagement is for executives from Samsung to meet with union leaders to set the framework and schedule for negotiations over topics like wages, vacation days, and bonus formulations.
Once all parties are back at the negotiating table, there is an opportunity to work towards a compromise solution that best meets the needs of both sides.
Learn more about Samsung by visiting samsung.com (U.S. website).
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