Samsung Electronics labor union's announcement of imposing penalties on employees who do not participate in the upcoming general strike is expected to spark controversy.
From May 9 to 18, the Joint Struggle Headquarters of the Samsung Electronics Union will conduct a vote on strike action among all union members, with plans to carry out the general strike from May 21 to June 7 if a majority vote in favor is obtained.
The Joint Struggle Headquarters is actively demanding participation from union members, stating that penalties will be imposed on employees who do not participate in the strike.
Choi Seung-ho, the head of the initial labor union at Samsung Electronics, recently stated on a YouTube broadcast that during the general strike, all executive members will occupy the Pyeongtaek office and hold rallies. They also plan to recruit staff to manage and supervise all offices at the Pyeongtaek site.
Furthermore, he added that a list of employees who work for the company during the strike will be managed, and they will be prioritized for forced transfers or dismissals that may require consultation with the union in the future.
This statement is interpreted as indicating that employees who do not participate in the strike will be prioritized for forced transfers or dismissals. The union plans to operate a reporting center during the general strike and will also implement a system to reward employees who report cooperative colleagues to the company.
Criticism has been raised against these actions, citing violations of the Personal Information Protection Act and excessive coercion in strike actions, which are deemed inappropriate. Managing employees with differing opinions as if they were on a "blacklist" may have legal implications.
If the general strike materializes, concerns about disruptions in semiconductor production arise. Samsung Electronics faced its first strike led by the nationwide union in 2024.
At that time, there were no major issues with semiconductor production, but the situation is different this time. With the number of union members increasing from around 32,000 to over 66,000, and the Joint Struggle Headquarters implementing penalty strategies, the participation rate in the general strike may be higher.
About 50,000 union members are affiliated with the Device Solutions (DS) division responsible for semiconductor business, raising the possibility of issues in High Bandwidth Memory (HBM) supply. Samsung Electronics recently started mass-producing and shipping the 6th generation product 'HBM4' with plans to gradually increase production volume.
The period of May and June, when the union has announced the general strike, is a peak time for HBM production. Concerns about production disruptions and the strike itself could be unsettling for clients and global investors.
Previously, Samsung Electronics and the labor union engaged in negotiations for the 2026 wage agreement for three months, but the talks collapsed due to significant differences in positions. The union demanded transparency in Excess Profit Incentive (OPI) payments and the removal of the cap. The company proposed a solution allowing OPI funds to be selected from 20% of Economic Value Added (EVA) or 10% of operating profit.
The union continued to demand the removal of the cap on OPI, while the company refused, citing concerns that removing the cap could lead to a sense of relative deprivation in many business units where exceeding OPI targets is difficult.