Samsung's Largest Union Loses Majority Status as 18,000 Members Quit

The Samsung Electronics (005930.KS) chapter of the Samsung Group Super Enterprise Union has lost its majority union status amid a steady exodus of members. The development is attributed to growing discontent among members over the distribution of performance-based bonuses by business division, even though a vote on the tentative wage agreement reached between Samsung Electronics' labor and management last month was approved.

According to industry sources on Tuesday, the Super Enterprise Union had 58,455 members as of that day. Samsung Electronics had 128,881 employees as of the end of last year, leaving the union short of the 64,441 members required for majority status.

During performance bonus negotiations, the Super Enterprise Union's membership had reached 76,000. In April this year, the Ministry of Employment and Labor recognized the union as the "majority union and worker representative."

However, after the tentative wage agreement emerged on the 20th of last month, member departures accelerated, with more than 18,000 members leaving the union and the loss of its majority status.

As a result, the Super Enterprise Union will find it difficult to maintain leadership in next year's wage and collective bargaining as it unifies the bargaining window with the National Samsung Electronics Union and the Samsung Electronics Union "Donghaeng," the second- and third-largest unions.

In addition, as the majority union, the Super Enterprise Union's chairman had been able to directly appoint worker representatives and lead the labor-management council, but this authority will now be lost, weakening its legal legitimacy as a worker representative.

"Within the Super Enterprise Union, the position is that since member departures have left it short of a majority, it will operate the union based on the semiconductor division," an industry official said.