A person surnamed Moon (40), who has run a Japanese restaurant in Godeok-dong, Pyeongtaek, Gyeonggi, for six years, spoke this way about the possibility of a general strike by the Samsung Electronics union. More than half of the customers who visit Moon's restaurant are Samsung Electronics employees. Moon said younger employees, in particular, come often.
Moon said, "At the strike launch rally on the 18th, there were actually more people, so sales increased, but if an actual strike begins, the situation will likely be different," adding, "For now, we have no choice but to watch."
As Samsung Electronics labor and management entered last-minute talks ahead of a general strike, business districts near the Pyeongtaek plant are also on edge over whether a walkout will happen. Commerce in this area is sensitive to changes in Samsung Electronics' commuting workforce. That is because weekday sales are about 20% higher than on weekends.
◇ Godeok district heavily reliant on Samsung staff… "Worried weekday sales will drop"
According to the Korea Small and Medium Enterprise and Startups Agency on the 18th, the average weekday daily sales at chicken restaurants in Godeok-dong, Pyeongtaek, Gyeonggi, where Samsung Electronics' Pyeongtaek plant is located, came to 1.69 million won. The average weekend daily sales were 1.32 million won. Weekday sales were about 28% higher than on weekends.
Other sectors were similar. The average weekday daily sales at pork barbecue restaurants were 3.25 million won, while the average weekend daily sales were 2.57 million won. Weekday sales were about 26% higher. Cafes also saw average weekday daily sales of 1.51 million won, 12.7% higher than the weekend average of 1.34 million won.
The semiconductor production lines at Samsung Electronics' Pyeongtaek plant run 24 hours a day, 365 days a year. But more people report to work on weekdays. As a result, the average weekday daily floating population in Godeok-dong exceeds 900,000, but falls to about 547,000 on weekends, a drop of nearly 40%.
Local merchants worry that if the union actually launches a strike, weekday sales could sink to weekend levels. That is because many restaurants and cafes around the Pyeongtaek plant depend on Samsung Electronics employees and partner-company workers.
A person surnamed A, who runs a Chinese restaurant in Godeok-dong, said, "About half of our dine-in customers are Samsung Electronics employees," adding, "Restaurants will find it hard to avoid the fallout from a strike." A person surnamed B, who runs a snack shop, also said, "The commercial district was just barely starting to recover, but it feels like the strike is right around the corner, so my worries are through the roof."
◇ General strike signaled for 18 days from the 21st… last-minute labor-management pains
Merchants' anxiety stems from last-minute turbulence in labor-management talks. Samsung Electronics labor and management attended a second post-mediation meeting at the Central Labor Relations Commission at the Government Complex Sejong starting at 10 a.m. on the 18th. They failed to find common ground at the first post-mediation meeting held on the 11th–12th. After the government and Samsung Electronics Chairman Lee Jae-yong appealed for dialogue, labor and management returned to the negotiating table.
The union is demanding the removal of the cap on bonuses at 50% of annual salary and the institutionalization of setting 15% of operating profit as the bonus pool. Management, on the other hand, says it will provide compensation above competitors' levels if it achieves No. 1 in the industry, but is pushing back that it is difficult to codify measures such as abolishing the bonus cap.
The Samsung Electronics Union under the Samsung Group Supra-Enterprise Labor Union plans to launch an 18-day general strike from the 21st to July 7 if talks do not conclude. Given the nature of semiconductor production lines, concerns are rising that, depending on the scale and duration of participation, disruptions could spread beyond production to partner companies and nearby commercial districts.
◇ Hwaseong and Suwon business districts on edge… Gyeonggi Province "considering emergency funds"
Other local business districts highly dependent on Samsung Electronics business sites show a similar mood. Along the road across from the entrance to the Hwaseong site, banners opposing the strike were hung in a row. Because these commercial districts have relied on sales from Samsung Electronics commuters and visitors, there are concerns that if an actual strike is prolonged, customer numbers could fall.
In Suwon as well, Samsung Electronics employees and partner-company workers are considered the main consumer base for local commerce. Since Pyeongtaek, Hwaseong, and Suwon are all areas where Samsung Electronics business sites and employee residences are concentrated, some project that if a strike drags on, the impact could spread beyond production sites to local small businesses.
Gyeonggi Province plans to consider injecting emergency management funds if damage occurs to second- and third-tier partner companies or small businesses near business sites. Depending on whether Samsung Electronics labor-management talks reach a last-minute deal or lead to a general strike, tension is rising in local commercial districts.