Samsung BioLogics Union Claims Samsung Electronics Is an 'Employer'...Direct Bargaining Demanded

First Round of Bargaining Proposed for October 14
Agenda Includes Job and Grade Structures, Evaluation Standards, and More

The labor union of Samsung BioLogics has claimed that it is substantively involved in the company's personnel and compensation systems and has directly requested collective bargaining with Samsung Electronics. This move is drawing attention, as the union and management at Samsung BioLogics continue to negotiate over wages and bonuses, and the union is now seeking to expand the scope of bargaining to include Samsung Electronics as a negotiating counterpart.

Panoramic view of Samsung Biologics factory in Yeonsu-gu, Incheon. The Asia Business Daily DB

On October 6, the Win-Win Labor Union of Samsung BioLogics announced that it had sent an official letter to Samsung Electronics requesting collective bargaining on joint standards and the operation and modification of personnel and compensation systems. Recipients of this request include Jay Y. Lee, Chairman of Samsung Electronics, the Samsung Electronics Business Support Office, and relevant departments responsible for human resources and labor affairs.

The union alleges that Samsung Electronics has previously been involved in setting common standards for the personnel system, evaluation and job grade requirements, as well as in determining the selection, development, and compensation levels of core talent and retention candidates at Samsung BioLogics. The union bases this claim on the fact that Samsung Electronics holds a 31.22% stake in Samsung BioLogics as its second-largest shareholder, and that there has been organizational and personnel continuity from the former Business Support Task Force (TF) to the current Business Support Office.

The union's proposed bargaining agenda includes joint standards and operational procedures for job and job grade systems, evaluation, promotion, talent development, and selection systems; the wage structure and pay bands by job and grade; and compensation standards tied to evaluation and promotion. It also encompasses criteria for designating, qualifying, and selecting core talent and retention candidates, compensation levels for these employees, and the reporting, consultation, approval, and amendment procedures relevant to related systems.

The union has also demanded that Samsung Electronics submit materials by October 12, specifically requesting current regulations and standards for personnel and compensation systems, shared guidelines communicated to Samsung BioLogics, and details of business reports, consultations, and approvals in which Samsung Electronics participated during system design and revisions.

The union has proposed October 14 as the date for the first round of bargaining. If Samsung Electronics designates a bargaining representative with the authority to discuss relevant matters and responds by October 12, the union plans to coordinate the bargaining process at that time. Should Samsung Electronics reject the bargaining request or fail to publicly announce the request in accordance with legal procedures, the union intends to initiate further actions, including filing a corrective petition with the Labor Relations Commission.

This latest demand arises as union and management at Samsung BioLogics have been engaged in months-long discussions over wages, bonuses, and clauses related to personnel and management rights. With the union expanding the scope to include Samsung Electronics as an employer, whether Samsung Electronics will ultimately be recognized as a party obligated to negotiate is expected to become a key issue moving forward.

This content was produced with the assistance of AI translation services.