Samsung Electronics' battle with the union has a ruling.
On December 18, Reuters reported that Lee Sang-hoon, chairman of the board of the Board of Samsung Electronics (KRX: 005930), was sentenced to 18 months in prison for violating South Korean trade union laws. The Seoul Central District Court in South Korea rendered the judgment.
Lee Sang-hoon and about 25 defendants were charged with sabotaging union activities for employees of Samsung's electronics maintenance division. To varying degrees, Samsung's management and employees have been involved in collecting sensitive personal information about union members. According to the Wall Street Journal, this personal information includes marital status, personal financial situation and mental health history.
According to Reuters, Samsung Electronics did not comment.
Just earlier, Kang Kyung-hoon, vice president of Samsung Electronics, was sentenced to 16 months in prison by a court for disrupting union activities. Samsung Electronics issued a statement on Wednesday saying that the company's understanding and attitude toward unions in the past was lower than society's expectations.
Samsung Electronics is a subsidiary of the Samsung Group, and its main businesses include semiconductors and mobile phones. The Wall Street Journal pointed out that Lee's imprisonment will affect the decision-making of Samsung Electronics. Samsung Electronics has 10 members of the board of directors, and Li Xiangxun is the chairman, responsible for holding quarterly board meetings and reviewing the company's financial reports.
The court ruling will end years of Samsung's union-related litigation. The lawsuit dates back to 2013, when internal company documents were uncovered showing some of Samsung's tactics to curb union activity. The investigation, which ended in 2015, did not initiate any charges at the time, but the investigation continued as prosecutors uncovered more evidence while investigating another case. In 2018, South Korean prosecutors indicted 32 people for allegedly violating labor federation laws.
According to the Financial Times, labor activists in South Korea have called for severe penalties for Samsung Electronics executives suspected of disrupting union activities. The head of score, CEO of market research firm, said, "This ruling is symbolic, and Samsung will face more pressure to change its corporate culture." ”