With a general strike by Samsung Electronics labor and management just two days away, the National Labor Relations Commission, which is mediating post-adjustment, said that "some differences between labor and management are narrowing," leaving open the possibility of a last-minute deal. Until the day before, assessments were chilly, saying the two sides were running on parallel tracks, but the mood is changing on the 19th, effectively the final negotiating table.
◇ A different tone from the day before… "There is a possibility of a deal, wait and see"
As Samsung Electronics labor and management entered the second day of post-adjustment talks on the 19th under government mediation, National Labor Relations Commission Chairperson Park Su-keun signaled a positive tone, saying there is a possibility of a deal. Park told reporters during the post-adjustment meeting that evening that "a mediation proposal needs to come out. There is a possibility." Asked whether the post-adjustment would go well, Park said, "Yes. Wait and see."
It is a shift in tone in just one day. The day before, Park said immediately after the meeting that "they are still running on parallel tracks" and that "even a mediation proposal has not been prepared," but on this day directly mentioned the possibility of a deal, prompting observations that the negotiating atmosphere has advanced considerably. Park said, "So far, both sides are willing to negotiate, and their differences are gradually narrowing," adding, "If possible, we will wrap up the talks by 7 p.m. today."
The key question at the meeting is whether the commission can present an official final mediation proposal to both sides. If labor and management both accept and sign the commission's proposal, it takes on the same legal effect as a collective agreement. Before the start of post-adjustment on the day, Park said, "We will see if the two parties can ultimately reach a deal, and if they cannot, we will issue a mediation proposal," adding, "There is still a possibility of a deal, so we will proceed with that in mind." In other words, the commission will push for a voluntary agreement as much as possible, but if that proves difficult, a commission proposal will come out by evening.
◇ "Bonus of 12%–13% + stock compensation" emerges as a compromise
The union is demanding that the calculation standard for excess profit bonuses be set at 15% of operating profit and that the current bonus cap of 50% of annual salary be abolished. Management, on the other hand, is proposing that they choose either 10% of operating profit or 20% of economic value added (EVA), which is after-tax operating profit minus the cost of capital.
A compromise card to bridge the gap between the two sides has also surfaced. Attention is focusing on whether labor and management can find common ground by setting the bonus payment standard at 12%–13% and making appropriate use of stock compensation. The distribution ratio of bonuses by business unit has also emerged as a new variable. Some suggest that reflecting both sides' positions, "40% for the institutional sector, 60% for the business unit" or "30% for the institutional sector, 70% for the business unit" could be realistic alternatives. Labor and management may also consider such compromises.
External pressure that could tilt the talks toward a deal is also growing. With President Lee Jae-myung himself urging a solution through dialogue, observers say there is more room for concessions. The courts have also put the brakes on the strike, leading to assessments that the union's strike momentum is effectively weakening. As the expected losses from the strike decrease, the union's bargaining power also falls.