Samsung Electronics' labor and management failed to reach an agreement on the second day of the second post-mediation session with the National Labor Relations Commission (NLRC) on the 19th, two days before a general strike.

While opinions were close on most issues, a significant disagreement on one final sticking point is expected to be resolved in a meeting to resume on the morning of the 20th, the day before the strike.

Park Soo-geun, Chairman of the National Labor Relations Commission, answering questions [Sejong=Yonhap News] 

The NLRC announced that the second day of the labor-management post-mediation session, which began at 10 a.m. on the 19th, was adjourned at 00:30 a.m. on the 20th.

Samsung Electronics' labor and management held marathon negotiations on the 19th, following their session at the second post-mediation table from 10 a.m. to 6:20 p.m. on the 18th.

However, the NLRC decided to adjourn the meeting after the session passed midnight on the 20th and was changed to a third session without an agreement. The adjourned meeting is scheduled to resume at 10 a.m. on the 20th.

When asked by reporters about the reason for the adjournment, NLRC Chairman Park Soo-geun said, "There are several issues, but the most important one could not be agreed upon," adding, "The management stated they would finalize their position and come at 10 a.m. today."

Regarding the negotiation status of the remaining issues, he said, "Opinions have likely been largely reconciled."

It is reported that labor and management have reached some consensus on abolishing the performance bonus ceiling, a key issue, but have experienced final-stage difficulties regarding the distribution ratio of performance bonus funds by division and the institutionalization of the agreement.

It is known that the management has shown a flexible stance, indicating that the institutionalization of the agreement could be applied for three years. However, there are observations that the labor and management have a significant difference of opinion on the distribution ratio by division.

The union's position is to pay 15% of semiconductor operating profit as performance bonuses, with 70% of this to be distributed among the entire semiconductor division, and the remaining 30% to be differentially allocated to divisions based on their performance. The management argues that this distribution ratio goes against the principle of performance-based personnel management and insists on increasing the differentially distributed portion by division.

Park Soo-geun, Chairman of the National Labor Relations Commission, answering questions [Sejong=Yonhap News] 

As these differences could not be resolved, Chairman Park confirmed that the NLRC presented a mediation proposal on the day's meeting, reconciling the positions of both parties.

He added, "Whether it is an agreement or mediation, it is the same. We will decide today whether to proceed with the agreement or the mediation proposal," and "Since we cannot reach an agreement, we are trying to issue a mediation proposal, and the discussion is currently paused."

Chairman Park explained that management is expected to state its acceptance or rejection of the mediation proposal in the meeting to resume today. If accepted, it is highly likely that the process will conclude by the morning for member voting procedures, and if rejected, for strike preparations.

He anticipated that member voting would take one day and stated, "If organized, the strike will be postponed for that duration."

Choi Seung-ho, chairman of the union's joint struggle headquarters, said, "We will stay up all night here at the NLRC to participate in the post-mediation meeting."

This statement is interpreted as meaning they will wait until the ball is passed back to management.

If management does not accept the mediation proposal in the resumed meeting, or if the member vote on the tentative agreement is rejected even if accepted by management, the union is expected to proceed with the strike on the 21st, utilizing the dispute rights it has secured in advance.

However, in this case, there is a considerable possibility that the government may exercise its right to emergency mediation, as previously hinted.

Emergency mediation is an exceptional procedure allowing the government to halt dispute activities in cases where national economic damage is feared. If invoked, dispute activities are immediately suspended, and NLRC mediation and arbitration procedures are conducted.

In this second post-mediation session, Samsung Electronics' labor and management engaged in a fierce tug-of-war until the final moments over the abolition of the performance bonus ceiling, equivalent to 50% of annual salary, the distribution ratio of performance bonus funds, and the institutionalization of such agreements.

Amidst this, Chairman Park Soo-geun mentioned in the afternoon that "there is some possibility of agreement," and suggested that an agreement or mediation proposal could be reached by 10 p.m., leading to speculation that a labor-management agreement was imminent.

However, as the meeting continued past the scheduled time into the early morning of the next day without a conclusion, the labor-management negotiations have extended to the day before the strike.