New union wooing Samsung workers

A Samsung Electronics worker holding trade union membership recruitment leaflets. For almost 50 years, the flagship subsidiary of the giant Samsung Group has avoided unionisation of its employees.
A Samsung Electronics worker holding trade union membership recruitment leaflets. For almost 50 years, the flagship subsidiary of the giant Samsung Group has avoided unionisation of its employees.PHOTO: AGENCE FRANCE-PRESSE

Its affiliation to powerful umbrella group could spell trouble for electronics giant

HWASEONG • Under the watchful gaze of Samsung Electronics security personnel, health and safety worker Ko Jee-hun stood outside his semiconductor plant, handing out leaflets touting the benefits of joining a trade union.

For almost 50 years, the firm avoided unionisation of its employees - sometimes adopting ferocious tactics, according to critics - while rising to become the world's largest smartphone and semiconductor manufacturer.

It is the flagship subsidiary of the giant Samsung Group, by far the biggest of the family-controlled conglomerates, known as "chaebol", that dominate the world's 11th-largest economy.

But last week, the local authority officials in Suwon, where the chipmaker is headquartered, certified the National Samsung Electronics Union.

It is affiliated to the powerful Federation of Korean Trade Unions umbrella group (FKTU), and analysts say the move could spell trouble down the line for the firm.

Mr Ko is the union's deputy general-secretary. "What's at stake here is more than wages," he said as he mounted a recruitment drive this week.

"We demand communication and to have our voices heard. Because we are not just components." The leaflets he handed out showed cartoon characters complaining about issues from holidays and lunch breaks to forced early retirement and unexplained bonus cuts.

"The real union has arrived," they proclaimed, with a link and QR codes for employees to sign up.

The security guards would not let him stand directly outside the factory gate in Hwaseong, about 50km south of Seoul, forcing him to take up a position at the next intersection - but almost all passers-by took a copy. "The fight has just only begun," Mr Ko told AFP.

Ahead of its formal establishment, the union registered 400 expressions of interest from Samsung Electronics employees, the FKTU says.

The new group has set itself a goal of signing up 10,000 members - almost 10 per cent of the workforce - which analysts say could see it demand a right to collective bargaining.

Samsung's founder Lee Byung-chul, who died in 1987, was adamantly opposed to unions, saying he would never allow them "until I have dirt over my eyes".

Internal documents from 2012 obtained by a South Korean MP instructed managers to control "problematic personnel" seeking to establish unions. "To avoid claims of unfair labour practices, dismiss key organisers before the launch of a union," it read, among other recommendations.

But organisers have seized the opportunity presented by the left-leaning government of President Moon Jae-in and controversy around the bribery trial of the company's vice-chairman Lee Jae-yong, the founder's grandson.

It also faces challenges from the US-China trade war and export restrictions imposed by Tokyo as part of a dispute with Seoul over wartime forced labour.

"The level of repression is much weaker now than before," said Mr Ko. "I think the company is being cautious over possible repercussions."

Samsung Electronics declined to comment to AFP.

However, higher labour costs also impact its business model, which is based on large-scale, long term investments, said Sejong University business professor Kim Dae-jong. "With the labour union, it could find it much harder to carry out large investments with finances diverted to pay for increased wages," Prof Kim said.

Three unions were set up at Samsung last year, but none had the backing of a bigger federation and fizzled after drawing a handful of members.

AGENCE FRANCE-PRESSE

A version of this article appeared in the print edition of The Straits Times on November 22, 2019, with the headline 'New union wooing Samsung workers'. Print Edition | Subscribe