South Korean officials announced Sunday they will explore every available measure, including emergency arbitration procedures, to prevent a work stoppage at Samsung Electronics, the nation’s largest employer, and reduce potential economic damage should a strike occur.
The global leader in memory chip production and its domestic labor union are scheduled to restart wage negotiations Monday with government mediation, potentially reducing concerns about a damaging work stoppage at the technology company responsible for nearly one-fourth of the nation’s export revenue.
“Just one day of suspension at Samsung Electronics’ semiconductor factory is expected to incur direct losses of as much as 1 trillion won ($667.68 million),” Prime Minister Kim Min-seok stated following an emergency cabinet meeting Sunday.
“What is more concerning is that a temporary pause on semiconductor manufacturing lines leads to months of inactivity,” Kim said, adding there were worries about economic damage ballooning to as much as 100 trillion won if materials had to be disposed of due to a strike.
Emergency arbitration procedures, which the labor minister can implement when officials determine a labor dispute threatens economic stability or public welfare, would immediately ban work stoppages for 30 days while the National Labor Relations Commission facilitates negotiations and arbitration.
Such measures are seldom used and would mark an unusual action for an administration that typically supports labor unions.
Union representatives indicated they would engage in sincere negotiations to reach a settlement with company leadership.
Samsung represents 22.8% of South Korea’s export economy and 26% of the national stock exchange, providing employment to more than 120,000 workers and partnering with 1,700 supply companies, Kim noted.
($1 = 1,497.7300 won)
