Following Samsung Electronics, a "majority labor union" has also emerged at its subsidiary, Samsung Display, according to reports. The Samsung Display Open Labor Union, launched in June 2022 with a little over 200 members, rapidly expanded its ranks and, in about four years, secured more than half of all employees as members. The Open Union has therefore begun procedures to obtain the status of employee representative. If recognized as the employee representative, it can take part in revising work rules and will gain various legal authorities, including the right to appoint employee members to the labor-management council.
Unions at Samsung Electronics and Samsung Biologics have signaled collective action, including a strike. With the influence of the Samsung Display union also growing, some say uncertainty has increased across the Samsung Group. The Samsung Display Open Union is part of the "Samsung Group supra-enterprise labor union" along with Samsung Electronics, Samsung Biologics, Samsung Electro-Mechanics, and Samsung Fire & Marine Insurance.
◇ Negotiating power strengthened with legal representativeness granted
Based on ChosunBiz reporting, as of the morning of the 3rd, the Samsung Display Open Union had 11,208 members. According to the "2025 Sustainability Report" of Samsung Display, the number of domestic employees as of the end of 2024 was 21,366 (excluding those on leave and interns). The Open Union set 11,000 members as the threshold to qualify as a majority union and has encouraged employees to join. Open Union Chairperson Yu Ha-ram said, "Even when considering the total workforce including those on leave, achieving majority-union status is certain at this point."
The Open Union is currently sharing its membership numbers with management and has begun the verification process for achieving majority-union status. As early as the 6th, it plans to send a joint inquiry, prepared in consultation with management, to the Gyeonggi Regional Office of Employment and Labor of the Ministry of Employment and Labor (MOEL) to start confirming membership numbers to secure employee-representative status.
The Labor Standards Act defines an employee representative as a "labor union organized by a majority of employees" or "a person representing a majority of employees." Once a union obtains employee-representative status, the authority to change work rules shifts from a majority of employees to that organization.
A majority union also has the right to appoint employee members to the labor-management council and can be involved in changes to ▲ layoffs ▲ flexible working hours ▲ optional working hours ▲ compensatory time off, among others. It serves as the bargaining counterpart that management must face in consultations and in designing systems. In particular, if a majority union concludes a collective agreement with management, that agreement has "general binding force." Even employees who are not union members are affected by the terms of that agreement.
◇ Launched as a second union and grew into a majority union… Management says it "will build a mature labor-management culture"
A union was formed at Samsung Display in Feb. 2020. At that time, the first union (Samsung Display Labor Union) was launched under the Federation of Korean Trade Unions. After its establishment, the union conducted wage and collective bargaining (wage and collective agreements) with management, but controversy arose within the company as it proposed welfare measures applicable only to members and declined to disclose bargaining details with management.
The Open Union was founded as a second union, independent of the two national federations (the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions). Within six months of launch, it surpassed the first union in membership and participated as a bargaining counterpart starting with the 2023 wage and collective agreements. In Feb. 2024, it joined the Samsung Group supra-enterprise union, broadening its activities.
At Samsung Display, labor and management have reached five consecutive years of dispute-free settlements through the 2026 wage and collective agreements. This year's average wage increase was set at 6.2% (4.1% base increase and 2.1% performance increase), with management offering tangible compensation such as introducing a housing loan program for employees without homes. In a vote with participation from more than 87% of Open Union members, 80.59% approved the terms of the wage and collective agreements.
While wage and collective bargaining at Samsung Display has proceeded relatively smoothly, growing labor-management conflict across the Samsung Group is cited as a concern. As employee dissatisfaction with the "opaque performance bonus system" is mentioned as a key reason for the rapid increase in Open Union membership, this could develop into collective action going forward.
Like other Samsung Group affiliates, Samsung Display operates an Excess Profit Incentive (OPI) and a Target Achievement Incentive (TAI). Among these, there is a growing perception within the company that OPI calculations are opaque, as up to 50% of annual salary is paid as a performance bonus funded by 20% of Economic Value Added (EVA). Chairperson Yu said, "It is difficult to know how EVA, which funds OPI, is determined," adding, "We have seen cases where performance bonus payout rates fell even when results improved, leading to many calls to make the calculation process more transparent."
The Open Union has set the formation of a companywide labor-management council as a short-term goal, anticipating increased bargaining power through obtaining employee-representative status. Currently, labor-management councils operate by business site in Giheung, Cheonan, and Asan, and the union aims to create a central body to integrate them and present a unified voice.
Regarding the union's attainment of majority status, Samsung Display said, "Over the past five years, we have reached dispute-free settlements with the union based on trust and respect and have built a mature labor-management culture," adding, "We will continue a cooperative relationship of mutual understanding and consideration for the company's sustained growth and the happiness of our employees."