Samsung Electronics’ future decision on its long-standing leukemia issue is being watched with keen interest by industry watchers after its arbitration committee proposed recommendations recently.
The controversy about the leukemia issue traced back to 2007 when one of its employee in its semiconductor plant died of the disease. Ignoring the issue for the past many years, only last May, Samsung made the first official apology to the families of the victims and started negotiations on the compensation with them.
This January, the arbitration committee was first set up by mutual agreement of the families, Samsung and Banollim, human rights gathering for semiconductor workforce. The three parties submitted their opinions to the committee, three months ago, which later in June presented the recommendation.
The keys of the recommendation is setting up a nonprofit foundation through donation, making compensation for the victims, taking measures to prevent disaster and apology. The nonprofit foundation is to be set up with Samsung's donation of 100 billion won.
The subjects for the compensation are laborers who work for the sector for at least a year since January in 2011. The corresponding diseases are 12 including leukemia, lymphoma, multiple myeloma, myelodysplasia, aplastic anemia and breast cancer.
The workers working for Samsung Electronics' partner companies are also included at the requests of Banollim and the workplace coverage includes Samsung Electronics' semiconductor and LCD plants and related facilities. The recommendations will be accepted if the three parties do not make objections within 10 days. If there is an objection, there will be additional adjustment.
The families and Banollim are showing a positive response. Hwang Sang-ki, a father of Hwang Yoo-mi, who died of leukemia while working for Samsung Electronics in 2007, said, "There are many good contents," however, pointing that the limitation on the working period of more than one year should be corrected.
Samsung Electronics said, "We appreciate the committee presenting the recommendation after long hours of consideration," adding that "We will carefully review the recommendation based on the basic principal that the pain of the families should be eased as early as possible."
It added that, "(However) the recommendation still includes contents which the company already said many times it is not able to accept."
Samsung reportedly opposed the idea that compensation for the workers of Samsung's partner companies are also included in the proposed recommendation.
Industry watchers said Samsung should accept the proposal or reject it, but in either case, the firm would make a great loss. If it accepts the proposal, it would gain a good corporate image but should spend a large sum. When it rejects the idea, it will have a scarlet letter that it has turned its face away from an employee for eight years who died of disease after working for the company.
Still, analysts said Samsung would not overturn the recommendation as succession of Lee Jae-yong, vice chairman of Samsung Electronics, is still ongoing. Dealing with the leukemia issue has been recognized as one of important processes for succession.
Apart from the leukemia issue, there are many issues to be solved for the succession procedure. Samsung has also been embroiled in controversy over the suppression of labor union of Samsung Electronics and Everland's partner companies. Currently, so-called “Lee Hak-soo bill” tailored to target chairman Lee Kun-hee’s three children and his two former key aides is also pending at the National Assembly.
Regarding the leukemia issue, Samsung is expected to announce late this month whether it would accept the proposal. Industry watchers said there should more serious discussion among the parties in a bid to prepare the ground to improve the working environment and safety management in Korean companies.
