SEOUL, July 10 (AJP) - Samsung Electronics' largest labor union on Friday urged lawmakers to withdraw a proposed revision to South Korea's Labor Standards Act that would allow part of workers' wages, including performance bonuses, to be paid in local gift certificates with employee consent.
The Samsung Electronics chapter of the Samsung Group Super Enterprise Labor Union said the bill would undermine the long-standing principle that wages should be paid in legal tender.
"The proposed amendment is a dangerous attempt that shakes the very foundation of wage payments," the union said in a statement, calling for the bill to be scrapped immediately.
The proposal, introduced on Wednesday by Democratic Party lawmaker Park Min-kyu, would permit employers to pay part of an employee's wages through local gift certificates or other non-cash means if the employee explicitly agrees or if such payments are stipulated in a collective bargaining agreement.
The bill has already drawn criticism from both of South Korea's umbrella labor organizations, the Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU), which also called for its withdrawal.
The Samsung union argued that if lawmakers believe local gift certificates are effectively equivalent to cash, they should first receive part of their own salaries and allowances in such vouchers.
"If local gift certificates are truly no different from legal currency, lawmakers who sponsored the bill should apply the measure to their own salaries and allowances before imposing it on workers' wages," the union said.
The union's criticism comes as South Korea's semiconductor industry is already pushing back against political proposals that it says could weaken corporate competitiveness, including discussions surrounding a potential windfall-profit levy on chipmakers.
Employees at Samsung Electronics and SK hynix have recently circulated a petition urging the National Assembly to halt consideration of any excess-profit recovery measures targeting the semiconductor industry and to withdraw policies they argue could undermine the sector's global competitiveness.
According to market estimates, Samsung Electronics' Device Solutions division and SK hynix are expected to post record operating profits this year, potentially resulting in substantial performance bonuses for employees early next year. Analysts estimate Samsung's chip division could generate around 40 trillion won ($29 billion) in operating profit this year, while SK hynix is forecast to earn roughly 30 trillion won, although estimates vary by brokerage.
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