SEOUL, April 15 (AJP) - Samsung Electronics is heading toward a partial walkout next week, with its largest labor union pushing ahead with industrial action over a profit-linked bonus system despite stalled negotiations.
The union plans a rally and walkout on April 23, with a full-scale strike scheduled from May 21 if talks fail to produce a compromise.
“We are open to negotiations if management puts the 15 percent operating profit payout and the removal of the bonus cap on the table,” a union official said.
The official added that a cleanroom walkout will proceed if management continues to offer one-off compensation instead of institutionalizing a bonus framework.
At the center of the dispute is the union’s demand that 15 percent of operating profit be allocated to employee bonuses and that the current cap be scrapped.
Based on the company’s record first-quarter operating profit of 57.2 trillion won, the proposed formula would translate into a bonus pool of up to 45 trillion won ($32 billion).
That would be roughly four times last year’s dividend payout of 11.1 trillion won and exceed the company’s planned annual research and development spending of 37.7 trillion won, raising concerns among management and investors.
The union, however, said the demand is aimed at creating a transparent and sustainable compensation system rather than securing a one-time payout.
“Our core demand is to establish a system that union members can accept in the long term, rather than just asking for more money because the company is making good money,” another union official said.
Samsung has warned that linking a large portion of operating profit to bonuses could constrain future investment in a capital-intensive and cyclical semiconductor industry.
A company official also flagged potential risks to client confidence if production is disrupted.
“In the long run, it is a tremendous loss for our company if it causes anxiety to clients or if clients show movements to change contract conditions,” the official said.
The controversy is further amplified by the contrasting situation at SK Hynix. Having abolished its bonus cap last year and agreeing to distribute 10 percent of its operating profit, SK Hynix employees are projected to receive significantly larger payouts.
Driven by the artificial intelligence boom and robust High-Bandwidth Memory (HBM) sales, securities firms estimate that SK Hynix’s upcoming bonuses could average around 700 million won per employee.
The union walkout is set to coincide with SK Hynix’s earnings release on April 23, which is widely expected to reflect similarly strong performance.
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