Court limits Samsung strike over semiconductor risks

A South Korean court has ordered Samsung Electronics’ labor union to maintain minimum staffing levels at semiconductor production facilities even if it proceeds with a planned general strike, accepting the company’s argument that even a temporary shutdown could severely disrupt chip manufacturing.

The Suwon District Court’s Civil Division 31 on Moday largely granted Samsung Electronics’ request for an injunction against the Samsung Electronics chapter of the Samsung Group Labor Union and the National Samsung Electronics Union. Samsung had sought to block what it called unlawful strike actions, including the suspension of essential operations and the occupation of production facilities.

The court agreed that key semiconductor processes, including the loading of new wafers and the management of wafer flow across fabrication lines, qualify as “maintenance operations.” Under South Korea’s labor law, such work must continue during a strike to prevent damage to facilities and manufacturing materials.

The court ordered the unions not to interfere with maintenance work being carried out with the same level of manpower, operating hours and operational capacity as before the strike. If the order is violated, each union would be required to pay 100 million won per day to Samsung Electronics, while the heads of the two unions would each face daily penalties of 10 million won.

“Once semiconductor facilities are damaged, restoring operations requires significant time and expense,” the court said. “Work necessary to prevent damage to those facilities must therefore continue at normal levels even during a labor dispute.”

The ruling also said workers needed to keep safety and disaster-prevention systems running must remain on site. In addition, the unions were barred from occupying production and research facilities, computer and communications systems, or blocking workers from entering company premises.

Samsung Electronics, however, reportedly believes the ruling alone will not be enough to prevent disruptions if the strike proceeds. More than 30,000 workers are expected to participate in the walkout, while only around 7,000 employees are required to stay on duty under the court order.

The union said it would comply with the court’s decision while moving ahead with labor actions scheduled for May 21.


송혜미 기자 1am@donga.com