Samsung agrees to negotiate with employees amid fears of strike

Earlier, Samsung and its union employees came face to face. The employees are demanding higher wages and better working conditions. The reports suggest that the unions could go on strike if their demands are not met.  Now a new report coming from South Korea, that Samsung has agreed to work out a solution with its union workers.

Last week, the trade unions requested a meeting with company executives. They are ready to negotiate with any Samsung co-CEO or with Samsung Group Vice Chairman and successor Lee Jae-Yong. The workers threatened to go on strike if they did not agree, which already has a legal right to do so. Now Samsung has agreed to negotiate with the unions.

However, it is unclear who will represent Samsung at next month’s conference. Industry officials point out that this is definitely not Lee Jae-Yong. Instead, it could be co-vice president Han Jong-hee or president Kyung Ke-Hyun, who is reported to be playing a new role in the company as co-CEO at the upcoming general meeting of shareholders.

There may also be some new names for labor representatives. Nationwide, Samsung Electronics Union, the largest of Samsung’s four unions, is reportedly in the process of electing new leaders through online voting.

According to reports, they are demanding a ten million won (approximately $8,400) increase in each employee’s annual salary. In addition, they want the performance-based bonus they pay employees to be equal to 25 percent of Samsung’s operating profit each year.

The company is now ready to come forward with a solution. Hopefully, it can negotiate a deal. The company certainly does not want its employees to go on strike, for the first time in its 53-year history. The Korean company already has a lot of internal issues.