Samsung Electronics Faces Internal Strife Despite Wage Agreement

Samsung Electronics has narrowly avoided a total strike by reaching a tentative wage agreement, but internal labor conflicts are intensifying. Tensions are rising not only between the Semiconductor (DS) and non-Semiconductor divisions but also within the DS division itself, particularly between memory and non-memory sectors, complicating efforts to stabilize the situation.

As of May 21, anonymous posts on Samsung Electronics' internal community have escalated, with employees criticizing the performance bonus criteria outlined in the tentative agreement. Many in the excluded mobile and consumer electronics (DX) division are expressing feelings of betrayal, alienation, and deprivation. The fallout from the negotiations aimed at preventing a total strike is shaking the organization to its core.

The conflict between the DS and DX divisions is particularly acute, with employees in these sectors representing a 60-40 ratio. DX employees argue that their contributions helped sustain overall company performance during the semiconductor downturn, and they feel that the recent agreement undermines their efforts. Some are advocating for the establishment of a separate union for the DX division, especially as certain DS sectors, despite posting losses, are expected to receive substantial bonuses.

Internal divisions within the DS sector are also significant. Tensions are growing between the memory division, which has driven performance, and the non-memory sectors, such as foundry and system LSI. Expected bonuses for the non-memory division, projected to be around 160 million won, are only a quarter of the 600 million won bonuses anticipated for memory employees. Non-memory staff claim that the union has neglected their interests, while memory employees argue that guaranteeing bonuses for loss-making divisions is unfair.

For Samsung Electronics' management, resolving these internal conflicts has become a top priority. Critics point out that the synergy that once characterized the company has dissipated, leaving behind a culture of departmental self-interest. The discord between the DS and DX divisions is likely to persist. Currently, DX union members have filed a court petition to halt collective bargaining, claiming that the leadership of the Samsung Electronics branch of the labor union acted unilaterally without the consent of all members.