Samsung Electronics Majority Union Rally Draws 40,000 at Pyeongtaek Plant Over Bonus Cap

Samsung Electronics' cross-company union, which has secured majority-union status for the first time at the company, held a rally Thursday afternoon outside the firm's Pyeongtaek site, demanding the abolition of a cap on performance bonuses and other changes.

Police and the union estimated attendance at about 40,000.

The union held a preliminary gathering until 2 p.m., followed by the main rally from 2 p.m. to 3 p.m.

The union is calling for performance bonuses equal to 15% of the company's operating profit and for the bonus cap to be scrapped.

If it fails to reach an agreement with management, the union plans a general strike from May 21 to June 7. The union said a strike could halt semiconductor production lines and cause losses of 20 trillion won to 30 trillion won.

The cross-company union has become Samsung Electronics' first majority union. As of the end of last year, Samsung Electronics had about 128,800 employees in South Korea, including about 78,000 in its DS (Device Solutions) semiconductor division. The union said it has secured about 74,000 members, mainly in the DS division.

Police blocked both directions of roads near the rally and deployed about 300 officers for traffic control and to prepare for unexpected incidents.

Pyeongtaek city also sent a safety alert message Thursday afternoon, notifying residents of traffic controls near the Samsung Electronics site and urging drivers to use detours.

Union Chairman Choi Seung-ho said in a speech that the union had negotiated in good faith for four months since last December to build a better Samsung Electronics, but "nothing" came back. He argued the bonus system remains opaque and that management tried to wrap up talks under the banner of one-time compensation.

He said the union would keep fighting until its demands are met, calling for fair compensation based on performance to revive the company's "talent first" principle.

Separately, Samsung Electronics shareholders held a counter-rally near the union gathering. Around 10 a.m., some members of the Korea Shareholder Activism Headquarters voiced opposition to the union's strike move and called for protecting shareholder rights.

Minority shareholders held a banner reading, "Samsung stands with 5 million shareholders in Korea," and placards that read, "Samsung shareholder dividends 11 trillion won! Samsung employee dividends 40 trillion won?"

They said shareholder rights and interests should be protected within a reasonable range, and argued the union seeks excessive bonuses when results are strong but does not share responsibility when results are weak.