Samsung union seeks say in Honam chip investment plan under revised labor law
The labor group says it will make the hub a key issue in next year’s bargaining, with a recent law expanding reasons for striking to working conditions.
People walk past Samsung Electronics' Suwon Campus in Suwon, Gyeonggi, on July 7.NEWS1
Samsung Electronics' largest labor union plans to include the company's proposed semiconductor investment in the southwest region as a bargaining chip in next year's negotiations, citing the so-called Yellow Envelope act.
"Under the revised Trade Union and Labor Relations Adjustment Act, enacted by the government and ruling party, business decisions that affect union members' working conditions have also become subjects for collective bargaining," the Samsung Electronics chapter of the Samsung Group United Union said in a statement on Monday.
"The proposed Honam semiconductor project falls under the definition because it will affect the workplaces and employment conditions of tens of thousands of employees," the union added, referring to the region encompassing Gwangju and the Jeolla provinces.
The union added that it had previously proposed forming a consultative body with the government and the company, but received no response.
"We hope to get a response regarding the union's proposal for a tripartite consultative body and engage in constructive dialogue," the union added.
The revised labor law, which took effect in March, expanded the scope of collective bargaining to include certain business management decisions. As a result, key corporate decisions including new factories or major investments can now be tabled during negotiations if they are closely related to employees' working conditions.
Decisions on production facilities and investment plans used to be regarded as matters for management. But under the revised law, unions may even go on strike if such decisions are deemed to affect employees' work arrangements, conditions or job assignments.
From left: SK Group Chairman Chey Tae-won, President Lee Jae Myung and Samsung Electronics Executive Chairman Lee Jae-yong join hands after announcing investments for four new chip plants at the Blue House in Jongno District, central Seoul, on June 29.JOINT PRESS CORPS
On June 29, Samsung Electronics announced a plan to invest 400 trillion won ($265 billion) to build two large semiconductor fabrication plants in Gwangju as part of the government's semiconductor megaproject. The company's union proposed establishing a tripartite consultative body on July 1, arguing that it should participate in discussions on the project's implementation.
The union also released the results of a survey to support its position that it should have a say in the discussion process.
A total of 84 percent of 8,300 members surveyed by the union on Saturday and Sunday said they opposed the Honam project. The union said concerns over job reassignments, working conditions and employee benefits were the main reasons.
"The company also expressed a negative view during two meetings with the union, saying that management also sees the project as burdensome," the union said. "If even the employees expected to work there and the company expected to invest there lack confidence in the project, it should first undergo sufficient revisions and gain broader social consensus."
"The workplaces where union members will work must have adequate industrial safety measures, housing conditions and infrastructure, supported by appropriate treatment," the union said at the time. "The union, which knows the workplaces best, will fulfill that role."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
