Samsung Union Vote Exposes Internal Rift Over Bonus Distribution

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By Kyungwoo Koo
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Internal conflict is intensifying within Samsung Electronics' labor union as voting continues on a potential general strike, with members from different divisions clashing over bonus distribution.

The joint struggle committee of Samsung Electronics' union is set to conclude its strike authorization vote on May 18. As of May 13, voter turnout stood at 72.6% and is expected to exceed 90% by the deadline.

The semiconductor (DS) division, which has higher union membership rates, is leading the vote. Citing expectations of record profits, DS members are demanding the removal of the 50% annual salary cap on the Overachievement Performance Incentive (OPI). The controversy escalated after reports emerged that the union chairman requested 450 million won (approximately $330,000) per person in bonuses for the memory business unit during negotiations.

Management has opposed removing the OPI cap, citing fairness concerns between divisions. With DS and Device Experience (DX) divisions operating under the same bonus structure, eliminating the cap could concentrate rewards in higher-performing units. As the memory super-cycle is expected to boost DS performance this year, removing the cap would widen the bonus gap between divisions.

Samsung Electronics, labor-labor conflict intensifies... DS demands "450 million" DX responds "disgusting" - Seoul Economic Daily Finance News from South Korea
Samsung Electronics, labor-labor conflict intensifies... DS demands "450 million" DX responds "disgusting"

DX employees have voiced open frustration on the workplace app Blind. They argue that the cross-company union, with 77.9% of members from the DS division, represents only DS interests. One DX employee posted "DS is disgusting," while another warned: "Without DX personnel joining through company-wide bonus distribution, your strike is bound to fail."

Critics pointed out that when the DS division posted massive losses, the DX division's profits kept the company afloat. "Are only semiconductor workers Samsung Electronics employees?" one anonymous source asked.

In 2023, the DS division recorded annual losses of 14.88 trillion won. However, Samsung Electronics remained profitable that year as the Mobile Experience (MX) and Network divisions generated approximately 13 trillion won in operating profit, Visual Display (VD) and Digital Appliances (DA) contributed 1.25 trillion won, and Samsung Display added about 2 trillion won.

"The union is focused on DS division members receiving hundreds of millions in bonuses rather than the interests of all members," the source said. "Compensation polarization will destroy organizational unity."

If the strike vote passes, a general strike is scheduled from May 21 to June 7.

Original reporting by Kyungwoo Koo for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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