Samsung Union Leader Calls for Institutionalization of Performance Bonuses

Choi Seung-ho, chairman of the Samsung Electronics union, stated that if the company does not show progress on institutionalizing performance bonuses, he will declare a breakdown in negotiations.

Speaking to reporters before a post-adjustment meeting at the Central Labor Relations Commission in Sejong on May 11, Choi said, "We continue to demand a performance bonus of 15% of operating profit and the elimination of caps, as well as institutionalization. If the company has no position on institutionalization, we believe that negotiations will not proceed today."

Choi expressed skepticism about mere verbal assurances, stating, "I cannot trust the term 'written agreement' and will look at this from the perspective of institutionalization. Since the CEO has stated that there will be no restrictions on performance bonuses based on operating profit, I hope the company makes a proactive decision."

Regarding the establishment of a common performance bonus fund for the struggling DX division, which includes mobile and home appliances, he clarified, "It is difficult to change the policy at this point," reiterating that this issue is excluded from the current negotiations.

However, Choi added, "As we have been legally recognized as a majority labor union, we plan to actively consider this matter next year."

Samsung Electronics and its labor union began a two-day post-adjustment procedure on May 11 and will continue discussions on wage negotiations centered around performance bonuses until May 12. This follows 45 days since their last dialogue in March.

The post-adjustment process involves the Labor Commission intervening with the consent of both parties to facilitate a final agreement. The negotiations will proceed under a 'single mediator procedure' led by a jointly recommended commissioner from both sides.