Samsung Biologics union tests parent’s employer role, 'Yellow Envelope' act
Samsung Biologics union has demanded bargaining with Samsung Electronics, testing the reach of Korea’s revised Trade Union and Labor Relations Adjustment Act — commonly known as the “Yellow Envelope” law.
Flags of the labor union at Samsung Biologics are seen at the corporate headquarters in Songdo, Incheon, on June 28.
NEWS1
The Samsung Biologics labor union on Tuesday made its first collective bargaining demand to Samsung Electronics, a move that could test how far Korea's new "Yellow Envelope" act extends employer responsibility.
Although Samsung Electronics does not directly employ the drugmaker's workers, the union argues that it substantially controls their working conditions as Samsung Biologics' second-largest shareholder, holding a 31.22 percent stake.
It has reportedly asked Samsung Electronics to negotiate over key personnel matters — namely job classifications and ranks, performance evaluations and promotions and compensation standards — as well as the broader design and implementation of personnel policies.
It also demanded that Samsung Electronics submit documents related to Samsung Biologics’ personnel policies and a list of bargaining representatives by next Monday and called for the first round of negotiations to take place at a Samsung Biologics workplace on Oct. 14.
A company can be recognized as an employer even if it is not a direct party to an employment contract if it exercises substantial and specific control over working conditions under the revised Trade Union and Labor Relations Adjustment Act — commonly known as the “Yellow Envelope” act. The law became effective in March.
The union said that if Samsung Electronics refuses to negotiate, it plans to seek a ruling by the National Labor Relations Commission on whether the company qualifies as an employer. The commission could issue a corrective order if it determines that Samsung Electronics qualifies as an employer.
“We are reviewing the matter and have no official position at this point,” Samsung Electronics said.
Labor tensions at Samsung Biologics over wages, performance bonuses and other issues have continued for more than six months. Unionized workers of Samsung Biologics left the Samsung Group United Union, the conglomerate cross-affiliate union, in June. It has since operated independently.
After three recent rounds of post-mediation talks failed to produce an agreement, the union announced plans to launch a second general strike for three weeks starting Oct. 26. It held its first general strike from May 1 to 5 this year.
BY CHOI EUN-KYUNG [[email protected]]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
