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Samsung Electronics’ labor union is reportedly promoting a class action lawsuit over the company’s wage peak system.

Samsung Electronics’ labor union is reportedly moving to file a class action lawsuit over the company’s wage peak system.

The Nationwide Samsung Electronics Labor Union, which is the largest of the four labor unions at Samsung Electronics, has been recruiting participants in a class action lawsuit through its website since Sept. 15.

The labor union plans to form a litigation team based on unionists first, and then allow non-member employees to participate in the lawsuit. The number of the union’s members is about 6,000, which account for 5 percent of Samsung Electronics’ employees in Korea.

Previously, Samsung Electronics introduced a wage peak system in 2014 that lowered wages in return for extending employees’ retirement age from 55 to 60. Initially, wages were cut by 10 percent each year from the age of 55. But later, the starting age of the wage peak system was extended by two years to 57 and the wage decrease rate was lowered to 5 percent.

In May, the Supreme Court invalidated a wage peak system which maintains the retirement age as it is but reduces wages each year without any rational reason. Samsung Electronics says its system is different because the retirement age has been extended. Yet the labor union calls the company’s wage peak system as unfair, as it cuts employees’ wages without changing their work.

Meanwhile, the labor and management of Samsung Electronics inked a wage agreement for 2021-2022 on Aug. 10. At the time, both sides agreed to form a labor-management win-win task force (TF) to discuss improvements in the wage peak system and leave system.

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