Controversy is brewing as members of the Samsung Electronics (005930) Cross-Company Union, the majority union at Samsung Electronics, are canceling charitable donation pledges that had been jointly operated with the company. Critics say the union is holding socially vulnerable groups, including patients with rare diseases, hostage to secure performance bonuses worth 15% of operating profit, or approximately 45 trillion won ($31 billion).
According to industry sources on Wednesday, posts certifying the cancellation of donation pledges by Cross-Company Union members are spreading across internal community boards at Samsung Electronics' semiconductor (DS) division.
Samsung Electronics' donation pledge system operates as a matching grant program, in which the company contributes an equivalent amount on a one-to-one basis when employees donate a set portion of their monthly salary. Introduced in 2010, the fund created through this system has been used to support vulnerable groups, including children with rare diseases and children with disabilities.
However, some union members have recently launched a campaign to cancel donation pledges, arguing that the company is using the matching grant program as a superficial gesture to fulfill social responsibility. Posts confirming cancellation of pledges are being uploaded in succession on internal bulletin boards. Reactions on the posts include comments such as "the donations are wasteful" and "I would rather use it for union dues."
Criticism of such actions by some union members is emerging even within Samsung Electronics. In particular, there is pushback that the union is undermining programs for vulnerable groups to secure performance bonuses that benefit themselves. Critics point to the contradiction of demanding 45 trillion won in bonuses, based on this year's expected operating profit of 300 trillion won, while simultaneously halting even small donations for the vulnerable.
Opinions are also surfacing that the Samsung Electronics union has abandoned its sense of social solidarity. Matching donations jointly established by the company and its employees carry significance beyond mere financial support, as they represent a commitment to shared public values. However, the union is treating this as an issue tied to performance bonuses and halting participation, effectively neutralizing corporate social responsibility.
"While demanding large performance bonuses, they have collectively moved to cancel pledges for monthly matching donations to the socially vulnerable, claiming the money is wasteful," a business community official said. "The union is showing itself to be aggressive about private interests while passive about social responsibility." The official added, "If the union truly wishes to speak of solidarity and responsibility, it should offer to set aside even a portion of the performance bonuses it receives to help the socially vulnerable. This behavior is unbecoming of the status of Korea's largest union."
