The leadership of the Samsung Electronics Union, which has announced a total strike, is embroiled in a controversy over its decision to amend union regulations to allow part of the union dues to be allocated as allowances for executive positions.
According to industry sources, the union amended its regulations during a general meeting in March to permit a portion of the union dues to be designated as allowances for executives. The revised rules reportedly state that the chairman can allocate allowances up to 10% of the union dues, and if the executive team consists of eight members or fewer, the allowance funding can be set at up to 5% of the dues.
With approximately 70,000 union members and monthly dues around 10,000 won, the union collects about 700 million won in dues each month. Even if only 5% is allocated for allowances, this amounts to 35 million won monthly. If the executive team consists of five to six members, each could receive several hundred thousand won in additional payments.
The controversy has intensified because key executives, including Chairman Choi Seung-ho, are already receiving salaries from the company through a system that exempts them from working hours. Critics argue that the structure allowing union leaders to receive substantial allowances on top of their company salaries does not align with the expectations of union members.
Particularly concerning is the timing of the regulation amendment, which coincided with a vote on whether to support strike actions. Some union members have raised suspicions that the details regarding the new allowances were not adequately explained before the vote. There are claims that this sensitive issue regarding the use of union dues was effectively pushed through amid the turmoil of a potential strike.
Industry observers believe this controversy could undermine the union's justification for the strike. The push for increased performance bonuses and enhanced compensation has now shifted to a debate over the leadership's allowance, leading to criticisms that the struggle for better pay has devolved into a controversy over executive privileges.
In fact, the Korean GM union faced internal conflict last year when former executives were accused of misappropriating 120 million won from a fund intended for tax payments, leading to police complaints.
Concerns have also been raised about a lack of checks and balances within the union. With the delegate council not properly constituted, decision-making and fund allocation are concentrated within a small executive committee, raising fears of excessive power being held by the leadership.
There are reports of members from the DX division considering leaving the union, as dissatisfaction grows over being sidelined in discussions about performance bonuses that primarily focus on the DS division.
An industry insider stated, "To gain legitimacy for the strike, the allocation of union dues must be transparent. If the leadership fails to clearly address the controversy over high allowances, internal distrust could destabilize the union before the total strike even begins."
* This article has been translated by AI.
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