Justin: Hi Isabelle, recently Samsung’s labor union has been in the news a lot. I was curious why are unions formed in Korea?

Isabelle: Unions are typically formed for a few key reasons. First, there’s a lot of concern about job security. Also, there could be a general dissatisfaction with working conditions, such as inadequate salaries. There also might be distrust of leadership, especially with allegations of workplace harassment or unfair treatment.

Justin : I see. Then from the company’s perspective, it’s critical to address these types of problems to reduce the motivation for employees to unionize.

Isabelle: Yes, at the end of the day, dynamics between companies and unions are like two competing leaderships trying to earn employees’ trust.

Justin: That’s an interesting point. So, if employees believe they can rely on the company’s existing channels to resolve their concerns, they might feel less inclined to turn to a union.

Isabelle: Exactly. These channels might include regular communication through the Labor Management Council, which, according to Korean labor law, should meet at least every three months. Additionally, a solid complaint management system for whistleblowers is essential.

Justin : What else? Isabel: Another recommended feedback mechanism would be, implementing a fair performance-based compensation system.

Justin : I see. I guess when employees see that their hard work is rewarded fairly, their desire for collective action is diminished.

Isabelle : That’s right. Unions form to gain collective bargaining power to obtain better working conditions. If employers are mindful of these factors, unions are less likely to form.