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Samsung rejected a plan proposed by the arbitration committee to set up a nonprofit foundation to resolve the issue of leukemia among workers. Since the foundation was the arbitration committee’s primary recommendation for compensating the victims and taking steps to prevent the recurrence of the disease, trouble is brewing for future arbitration.

In a position statement on the arbitration committee’s recommendations released on Aug. 3, Samsung Electronics said, “We do not think that the establishment of the nonprofit foundation recommended by the arbitration committee is a viable solution. It would take a long time to set up the foundation and to use that foundation to provide compensation.”

Instead, Samsung announced that it would set up its own compensation committee and create a fund worth 100 billion won (US$85.53 million) - the amount recommended by the arbitration committee - for immediate execution.

Labor experts suggest that Samsung is uncomfortable with the idea of a foundation getting involved in the process of implementing measures for preventing future outbreaks.

Samsung submitted its counterproposal at the end of the ten-day deliberation period, which the arbitration committee stated was the deadline for raising objections when it made its recommendations on July 23.

The arbitration committee was established to resolve problems connected with the outbreak of leukemia and other diseases at semiconductor factories and other facilities operated by Samsung Electronics.

Samsung‘s counterproposal limits eligibility for receiving compensation to employees who left the company after 1996 and excludes miscarriages and sterility from the 12 categories of diseases that the arbitration committee said would be eligible for compensation. Samsung also said that it would only recognize 10 years as the maximum incubation period for certain diseases, down from the 14 years recognized by the arbitration committee.

In an amendment submitted to the arbitration committee on July 30, the family action committee opposed the proposal to establish a foundation because it would delay compensation and argued instead that the people eligible for compensation should negotiate directly with Samsung Electronics to wrap up the issue within the year.

Banollim, which had already said that it largely accepted the arbitration committee’s proposal, submitted a counterproposal to the committee on Aug. 3 that revises several sections.

Banollim is a watchdog group working for the health of workers in the semiconductor industry.

With Samsung, a key party in the negotiations, refusing to establish a foundation, the arbitration committee has its work cut out for it in future deliberations. The foundation was set to play a major role in the arbitration committee’s plan, both in the complicated procedures surrounding compensating victims and in implementing measures to prevent another outbreak.

Three members of the arbitration committee were planning to discuss how to deal with the various counterproposals by Tuesday. Committee members said they intend to do their best to come up with an acceptable final proposal, though they did not specify a timeframe for drafting it.

By Jeon Jong-hwi and Lee Jeong-hoon, staff reporters

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