The launch of a "majority union" that can be recognized as the workers' representative at Samsung Electronics has entered the final countdown. If a single union's membership exceeds half of the company's workforce, its legal status is strengthened, including securing the authority to negotiate wages with management. If a union that acquires workers' representative authority at the largest company in Korea launches, it could influence workplace culture across the board and has emerged as an industry focus.
According to the Samsung Group supra-corporations labor union Samsung Electronics chapter (hereafter the supra-corporations union), as of 4 p.m. on the 23rd, the number of members who joined the union stood at 60,232. Under the Labor Standards Act, a workers' representative is defined as "a labor union organized by a majority of workers" or "a person representing a majority of workers."
The supra-corporations union says it will achieve a majority union once membership surpasses 62,500. If it secures about 2,300 more members, it is expected to begin full-fledged procedures to "secure workers' representative status." A supra-corporations union official said, "We expect to meet the legal threshold to secure workers' representative status (as a single union) as early as next week, or by the 5th of next month at the latest."
◇ "Hard to obtain workers' representative status with multiple unions"
Samsung Electronics saw its first union formed in 2018. It currently operates under a multi-union system with five unions active. In the absence of a "majority union" with representative status, wage bargaining and other talks have proceeded separately. In response, activities to obtain workers' representative status have been carried out centering on the supra-corporations union.
Previously, the supra-corporations union claimed it had met the legal conditions required for recognition of "workers' representative status." As of Nov. 4 last year, it argued that combining the membership of ▲ the National Samsung Electronics Labor Union (Jeonsamno, 25,709) ▲ the Samsung Electronics Donghaeng Union (2,072) ▲ the supra-corporations union (34,781) "numerically achieved a majority." It argued that multiple unions should form a representative body or similar alliance and be granted workers' representative status.
Accordingly, the supra-corporations union sent an official letter to key executives, including Samsung Electronics Chairman Lee Jae-yong, CEO Jun Young-hyun (head of DS division, vice chairman), and CEO Roh Tae-Moon (head of DX division, president), asking them to "clarify the status and legal authority of the workers' representative and carry out an objective procedure to determine membership numbers." Samsung Electronics said, "The status of the workers' representative is not something the company can judge at its discretion; objective verification is needed to determine whether the statutory requirements have been met," adding, "We intend to seek verification and judgment through a credible external institution."
In the process, the National Samsung Electronics Labor Union sent an official inquiry to the Ministry of Employment and Labor (MOEL) to confirm whether "workers' representative status can be granted." The ministry determined that, under a multi-union system, it is difficult to obtain workers' representative status by simply summing the membership numbers. This led to discussions among several unions about the possibility of integration.
◇ If recognized as workers' representative, the union can be involved across management
The supra-corporations union's increase in membership differs from the earlier case of summing memberships across multiple unions. As a single union, it is on the verge of securing a majority of the entire workforce as members. This has increased the likelihood of securing workers' representative status.
The supra-corporations union grew from 6,300 members in August last year to 45,000 in just three months. It surpassed 60,000 another three months later, rapidly expanding its ranks. An internal Samsung Electronics official said, "At competitor SK hynix, 10% of operating profit is used as the performance bonus pool and is paid relatively transparently," adding, "The per-capita performance bonus is also large, which has fueled a sense of relative deprivation within the company. That has led to a sharp increase in employees joining the union."
Even if the supra-corporations union secures about 2,300 additional members, it is uncertain whether it can immediately obtain workers' representative status. According to last year's semiannual report, Samsung Electronics had 129,524 employees in total, including 599 fixed-term workers. Because there is about a 3,000-person gap with the majority threshold the supra-corporations union calculated, some say a separate verification process is needed. The supra-corporations union is said to plan to request that management proceed with confirmation procedures to obtain workers' representative status once it secures 62,500 members.
If the supra-corporations union is recognized as a workers' representative body that has secured more than half of the total workforce, it will gain significant legal authority. Attorney Lee Gwang-seon of YulChon said, "The area that changes the most depending on whether there is a majority union with workers' representative status is changes to the rules of employment," adding, "The decision-maker for changing the rules of employment shifts from 'a majority of workers' to 'a majority union,' creating a structure in which changes require their consent." He continued, "A majority union also has the right to appoint labor members to the labor-management council, among others, which means there will generally be many more matters for the company to discuss." On collective actions such as strikes, he explained, "Even under a multi-union system, strikes can be carried out after procedures such as obtaining members' consent and holding a general meeting, so achieving a majority does not change that aspect."
In addition, a majority union can be involved in changes to ▲ layoffs ▲ flexible working hours ▲ optional working hours ▲ compensatory leave systems. In the process of labor-management consultation and system design, it effectively becomes the counterpart management must negotiate with. If a majority union concludes a collective agreement with management, its provisions carry "general binding force." Employees who are not union members are also subject to the terms of the agreement.