Samsung has been granted a last-minute injunction by a South Korean court that limits the scope of strike action planned by disgruntled employees later this week, forcing both sides back to the bargaining table for more talks. The Financial Times reports that the Suwon District Court passed down a ruling on Monday, partially accepting a request from the company to neuter the planned industrial action.
Workers are unhappy over bonus caps and seeking a more generous share of Samsung's profits, amongst other things, in an 18-day walkout scheduled to begin on May 21. Now, the aforementioned court has said that staffing levels required to maintain safety, prevent damage to the facility, and maintain product quality "must remain at normal levels," FT reports. Furthermore, union members and their leaders will not be allowed to occupy or lock company facilities, or to prevent workers from entering them, and will face a fine of $74,000 (100 million won) per day if this order is breached.
While Samsung has already started winding down production at its facilities in anticipation of the walkout, its share price has jumped in early trading as a result of the ruling, which obviously favors the company and will weaken the impact of any strike action, and thereby the bargaining position of the workers.
To that end, Reuters reports that Samsung Electronics and the labour union have resumed talks to stop the industrial action. Some 45,000 workers had been expected to take part, although it's unclear how many are affected by the court ruling should the strike go ahead. A statement from the union reported by Reuters said that the action wouldn't stop the strike from going ahead if no deal can be reached, but that the union would "engage seriously" in negotiations.
Previous estimates indicate the strike could cost Samsung a total of 4 trillion won in revenue, with others putting the figure higher at 1 trillion won ($700 million) per day. Workers have already rejected the offer of a one-time bonus payout of $340,000 per employee. No doubt, this offer is undermined somewhat by rival SK hynix, which is set to pay out some $477,000 per employee this year and $900,000 next year. Bonuses at the company remain guaranteed for the next 10 years, putting Samsung's offer in the shade.
South Korea's government has said it will pursue all options to prevent a strike, including an emergency arbitration order. Such a government order would, in theory, prevent strike action for 30 days while mediation and arbitration are conducted by the country's Labor Relations Commission.
