Samsung Electronics Non-Semiconductor Union Stages Surprise Protest

Samsung Electronics' non-semiconductor division union staged a surprise protest outside the Central Labor Relations Commission on May 18, opposing the wage negotiations that are heavily focused on the semiconductor (DS) sector. They also made a novel demand for the distribution of performance bonuses to partner companies.

According to industry sources, the Donghaeng Union of Samsung Electronics and the Suwon branch of the National Samsung Electronics Union held a separate demonstration in front of the commission during the wage negotiation post-adjustment meeting. They distributed materials outlining the 'six key demands of DX division workers' and called for the inclusion of additional agenda items for DX division members.

The demands include: securing a system for performance bonuses amounting to 15% of operating profit, ensuring common resources for the entire company, and enhancing transparency in the criteria for executive bonuses.

Notably, the demand for distributing performance bonuses to partner companies drew attention. The unions stated, "We must secure 15% of operating profit for performance bonuses, with some allocated as common resources for the entire company and some for performance bonuses for partner companies to realize shared value." This marks the first time Samsung Electronics' union has officially mentioned the need for bonus distribution to partner firms during the ongoing bonus conflict.

Internally, there are interpretations that this movement is a response to recent criticisms of the inter-company union's total strike phase being labeled as 'selfishness of regular unions.'

The Donghaeng Union and the Suwon branch are currently protesting that the wage negotiation structure is primarily focused on the DS sector. They argued, "The inter-company union leading the representative negotiations is solely fixated on the DS sector's performance bonus discussions, continuously excluding key issues for the DX division. The performance bonus resources should reflect the overall value of Samsung Electronics without sector discrimination."

However, there is a prevailing view that the likelihood of these demands being adopted as actual post-adjustment agenda items is low. Nonetheless, the public expression of discontent among DX division members is intensifying the internal 'union conflict' at Samsung Electronics.

Previously, the Donghaeng Union, primarily composed of DX members, notified the inter-company union and the National Samsung Electronics Union on May 4 of their withdrawal from the joint negotiation team, which had been formed for wage negotiations last November. This marks a visible fracture between the unions after about six months of collaboration. The Donghaeng Union, with over 2,300 members, reportedly has about 70% of its members working in the DX division, which includes TV, home appliances, and mobile sectors.

In their official statement at that time, the union criticized, "Despite our proposals and requests for the rights of all members, both unions have not responded. There have been ongoing attacks and derogatory remarks against our union, including malicious labeling as a 'yellow union.'"