Observers say Samsung is attempting to head off employee discontent to loosen their ties with labor unions

By Kim Jae-seob, Staff Writer　

　

The Samsung Group is launching active efforts to appease its employees prior to the implementation of the controversial multiple union system and ban on wage payments to full-time unionists in July. Observers say its intent is to head off employee support even if it cannot prevent the establishment of unions per se.

According to accounts Wednesday from group officials, efforts are under way to alter the method for selecting labor-management council representatives for the various affiliates to a direct election system. To date, employees have only been directly electing a representative for their own workplace, with the chairperson selected by indirect election through representatives. As consultative groups representing employees, the affiliate labor-management councils can only engage in salary negotiations with the company and do not possess collective action or strike rights.

Regarding the direct election system, a Samsung official said, “The idea is to shift support toward labor-management councils that are friendly to the company.”

Efforts are also being devoted to eliminating environments that might lead employees to become disgruntled with the company. This was the contributing factor to alteration of the personnel evaluation system. The Samsung Group recently revised its regulations so that even employees who drop a rating in their personnel evaluation will not see their annual salary fall below the average for the preceding three years. The measure was intended to smooth over employee discontentment. Previously, a drop in the assessment rating for a Samsung Electronics section chief from “A” to “C” would have meant a decrease of more than 10 million won ($9,206) in his or her annual salary.

Also reconfigured was the system for performance-based pay, which was given separately from annual salary. This pay, which was previously set at up to 150 percent for the first and second halves of the year, was altered so that 100 percent would be fixed as base pay, with only the remaining 50 percent graded. This move effectively reduced the chances of employees who felt relatively deprived developing into a disgruntled contingent.

The Samsung Group also effected large increases in employee welfare benefits, including autonomy with arrival and departure hours, increased support for health checkups, and the introduction of a telecommuting system. Pregnant employees receive separate refreshments and, along with employees with children in company day care, are entitled to priority use of company parking facilities.

A Samsung Electronics section chief said, “Given that a labor union is needed to improve the welfare and quality of life of employees, these days people are even questioning the need for a union at all.”

At the same time, efforts are also underway to step up in-house controls. Sources reported a recent increase in cases where labor union issues received major focus during executive education periods. Some observers are calling the late 2010 recruitment of a former Ministry of Employment and Labor bureau chief a move to prepare for the multiple trade union era.

A Samsung official said, “If trouble arises from the formation of a labor union at Samsung, we have no experience or manual at all on how to control the situation and communicate with the outside.”

“So our view is that the best approach is to prevent labor unions from gaining employee support even if they appear, and we are making careful preparations,” the official added.

　　

Please direct questions or comments to [englishhani@hani.co.kr]