Samsung Union Faces Internal Strife Following Wage Negotiations

Samsung Electronics has reached a final agreement on wage negotiations, but internal conflicts within the union are escalating. Concerns are growing that the Samsung Group's inter-company union, representing Samsung Electronics, may lose its majority status as employees from the Device Experience (DX) sector continue to leave the union.

As of 10 a.m. on May 28, the number of members in the inter-company union has dropped to approximately 69,000, a decrease of over 6,000 from the peak of 76,000 during the wage negotiations. This decline is particularly attributed to the exodus of members from the DX sector, which oversees home appliances and mobile devices.

The inter-company union secured its majority and legal representative status from the Ministry of Employment and Labor in April. To maintain this status, it must retain more than approximately 64,500 members, which is half of the total workforce.

If the current trend of departures continues, the union's influence may weaken during the multi-union negotiation process next year.

In fact, the second and third largest unions, the National Samsung Electronics Union (Jeonsamno) and the Samsung Electronics Union Donghaeng, have recently seen an increase in membership, reaching 20,000 and 16,000 members, respectively. This shift appears to be driven by dissatisfaction among DX sector employees with the provisional agreement focused on compensation in the DS sector.

In response, the inter-company union has begun restructuring its organization. Chairman Choi Seung-ho announced plans to operate negotiations under a 'two-track system' for the DS and DX sectors. The executive committee will be divided into five members from DS and three from DX, with separate consideration for DX sector demands.

Choi acknowledged, "I understand that a high approval rate does not necessarily reflect member satisfaction. I have deeply contemplated the disappointment and inadequacies that are not visible in the votes." He also publicly apologized for controversial remarks made during negotiations, including comments expressing frustration with the DX sector. A vote for his reappointment as chairman is scheduled for June 17.

However, there are concerns within the union regarding the separation of negotiations for DS and DX. Jeonsamno issued a statement on May 27, emphasizing that "the real threat is not from our colleagues but from a structure that encourages competition between business units," clearly opposing the idea of separate negotiations.

While Jeonsamno recognizes the feelings of alienation among DX members and the compensation disparities between memory and non-memory sectors within DS, it argues that the root cause lies in the company's opaque compensation system, not the union. They stressed, "Both DS and DX are affected by market changes, and if the negotiation structure is divided, it will inevitably weaken our ability to support each other in times of crisis."

There are predictions that internal discord between the DS and DX sectors will persist for some time, as performance bonuses and differences in business unit results widen, prompting the union to begin operating based on business unit interests. In this context, discussions about the potential separation of DS and DX sectors have also emerged. Unlike most leading global semiconductor companies like NVIDIA, TSMC, and SK Hynix, which have specialized structures focused on semiconductors, Samsung Electronics uniquely operates as a comprehensive electronics company encompassing both semiconductors and finished products.