Samsung SDS has officially launched its first labor union since the company's founding. The move is seen as an outgrowth of a labor-management conflict that erupted over a planned overhaul of the company's bonus system.
According to industry sources Tuesday, the Samsung SDS chapter of the Cho Corporate Union issued a founding declaration and began accepting membership applications. It is the first time a union has been established at Samsung SDS since the company's founding.
A conflict over the overhaul of the bonus system is cited as a key reason behind the union's launch. Samsung SDS is pushing to revamp its bonus structure by abolishing the existing cash-based Performance Incentive (PI) and instead paying company stock equivalent to 20% of annual salary. A vote among employees on the change is currently underway. The vote was originally scheduled to close on the 29th of last month, but the company extended the deadline to the 7th of this month. Employees opposing the overhaul have pushed back, arguing that the company is revamping the bonus structure without providing an explanation that members can accept.
As this conflict has led to the union's launch, it is expected to affect future discussions surrounding the overhaul of the bonus structure. In its founding declaration, the union said, "We established the chapter to protect the rights and interests of employees working at SDS," adding, "It reflects the will of employees who have been unable to voice their concerns to take a meaningful step forward toward their own rights and a better working environment."
