Samsung Electronics labor and management reach tentative agreement a day before strike… Welcomed by political and business circles

Samsung Electronics labor and management and the labor union 5 month 20 day reached a tentative wage-negotiation agreement. The agreement came a day before the planned all-out strike. As a result, an immediate strike did not take place.

Both sides agreed to finalize the tentative agreement after completing their internal procedures. The company and the union are expected to coordinate the schedule for finalizing the agreement and the detailed implementation measures. The specific terms of the agreement and the timing of its announcement have not yet been disclosed.

Han Byeong-do, floor leader of the Democratic Party of Korea, said he welcomed the tentative labor-management agreement. He said the agreement would reduce uncertainty across the economy and industry. Han expressed his gratitude to both sides for not giving up on dialogue until the end.

The Korea Enterprises Federation said it was relieved that the worst-case scenario of a strike had been avoided. The federation cited intensifying competition in the semiconductor industry and uncertainty in global markets. It said labor and management had each stepped back and found common ground through dialogue.

The federation explained that the agreement reflected circumstances unique to Samsung Electronics. It drew a line, saying labor should not use it as a basis to extend excessive performance-pay demands across the industry. The federation urged the parties to quickly dispel the remaining uncertainty and build stable labor-management relations.

Both labor and management plan to finalize the agreement by completing subsequent procedures and announce a timetable for its implementation. The government was credited with playing a role in enabling negotiations. The parties concerned will proceed with follow-up procedures while making the status of the agreement’s implementation public.