Samsung Union to Hold Rare Six-Day Vote on Tentative Bonus Deal
Summary
- Samsung Electronics management and labor said their tentative performance-bonus agreement will be put to a membership vote for six days from May 22 to May 27.
- If the tentative agreement is approved, it will take effect as a legally binding collective bargaining agreement and apply equally to members of other unions and non-union employees.
- Calls to vote down the proposal are emerging over the 6 million won ($4,300) bonus for the DX division and a sense of relative deprivation in non-memory businesses including foundry, though rejection is viewed as unlikely because the non-memory workforce is relatively small.
Forecast Trend Report by Period
Union chief apologizes that the deal cannot satisfy everyone
Some in DX and non-memory units call for proposal to be voted down
Samsung Electronics Co. and its labor union will put a tentative agreement on performance bonuses to a membership vote starting May 22. Management and labor are stepping up internal outreach as they try to close a long-running dispute.
Opposition remains a variable, especially in non-memory businesses such as foundry, where some employees say the proposal should be rejected because they have been unfairly treated.
Samsung Electronics’ union will hold a vote on the tentative agreement from 9 a.m. on May 22 to 10 a.m. on May 27, spanning six days. That is an unusually long voting period by union standards. The extended schedule reflects the company’s large workforce and the depth of frustration left by the negotiations, requiring more time to win internal support.
Choi Seung-ho, head of the Samsung Electronics chapter of the Korean Metal Workers’ Union, wrote on May 21 that he had received both encouragement and complaints from employees in LSI, foundry, shared-service organizations and memory. “I’m sorry I can’t satisfy everyone,” he said, adding that he does not want to give up on the union and hopes to achieve a better outcome with members.
Jun Young-hyun, vice chairman of Samsung Electronics’ Device Solutions division, also sent employees a message urging them to put the conflict behind them and pull together. Both labor and management are moving to shore up internal unity ahead of the vote.
If the tentative agreement is approved and then signed by representatives of the company and the union, it will take effect as a legally binding collective bargaining agreement. Because the Korean Metal Workers’ Union chapter has a majority of all workers as members, the agreement would also apply to members of other unions and to non-union employees under South Korea’s labor law.
Backlash inside the company is becoming more visible. Employees in the Device eXperience, or DX, division, who would receive a 6 million won ($4,300) bonus under the proposal, have been particularly vocal. Calls to participate in the vote and reject the deal are being made openly among those workers.
Employees in loss-making non-memory businesses such as foundry have also voiced complaints. Under the tentative agreement, workers in foundry and other loss-making units would receive performance bonuses at about 60% of the standard payout rate starting next year, even if results for the broader Device Solutions division are strong. Even so, rejection is not seen as highly likely because non-memory units account for a relatively small share of headcount.
Kwak Yong-hee, Hankyung.com reporter, kyh@hankyung.com
Won Jong-hwan, Hankyung.com reporter, won0403@hankyung.com
Korea Economic Daily
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