South Korea announces it will explore all avenues to prevent a strike at Samsung
The prime minister of South Korea stated on Sunday that the country will take all necessary measures, including emergency arbitration, to prevent a labor strike at Samsung Electronics, the nation’s largest employer, and to minimize any harm that might result from one.
“Just one day of suspension at Samsung Electronics’ semiconductor factory is expected to incur direct losses of as much as 1 trillion won ($667.68 million),” Prime Minister Kim Min-seok said following an emergency meeting with ministers on Sunday. “What is more concerning is that a temporary pause on semiconductor manufacturing lines leads to months of inactivity,” Kim added, adding that there were concerns about economic damage ballooning to as much as 100 trillion won if a strike occurred.
If the nation believes that a dispute may negatively impact daily life or the economy, the labor minister may invoke an emergency arbitration order that instantly forbids industrial action for 30 days while the National Labor Relations Commission mediates and arbitrates the case.
It would be a remarkable move for a union-friendly government and has not been used very often.
The union declared on Sunday that if the corporation made a less-than-ideal offer, it would not accept a salary arrangement and would not yield to pressure on arbitration.
According to Kim, Samsung employs over 120,000 people and works with 1,700 suppliers, accounting for 22.8% of South Korea’s exports and 26% of the country’s stock market.
