Samsung Electronics Bonus Deal Heads to Union Vote as DX, Non-Memory Opposition Builds

Union Chief Choi Seung-ho Apologizes for Failing to Satisfy Everyone

Some in DX, Non-Memory Units Call for Deal to Be Rejected

Samsung Electronics Co.'s tentative agreement with its labor union on performance bonuses will go to a membership vote starting May 22. Both sides are stepping up internal outreach to close out a long-running dispute.

A key uncertainty is opposition centered on non-memory businesses such as foundry operations. Some employees there say the deal leaves them feeling relatively disadvantaged and should be voted down.

The union will hold a vote on the tentative agreement from 9 a.m. on May 22 to 10 a.m. on May 27, a six-day window. That is longer than a typical union vote. With Samsung's workforce so large and frustrations running deep after the drawn-out negotiations, the extra time is meant to help build support internally.

Choi Seung-ho, head of the Samsung Electronics branch of the Korean Metal Workers' Union, said on May 21 that he had received both support and complaints from employees in LSI, foundry, shared organizations and memory. "I'm sorry I can't satisfy everyone," he said.

He added that he did not want to give up on the broader union and hoped to produce a better outcome together with members.

Jun Young-hyun, vice chairman of Samsung Electronics' Device Solutions division, also sent a message to employees urging them to put the conflict behind them and unite. Labor and management are both trying to shore up internal cohesion 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 union represents a majority of the overall workforce, the agreement would also apply to members of other unions and to non-union employees under South Korean labor law.

Internal pushback against the tentative agreement is also becoming more visible. Employees in the Device eXperience division, who are set to receive a performance bonus of 6 million won ($4,350), are particularly upset. Among some of them, there is open talk that they should join the vote and defeat the deal.

Employees in loss-making non-memory businesses such as foundry have also voiced dissatisfaction. Under the tentative agreement, those business units would receive performance bonuses equal to about 60% of the common payout rate from next year, even if the broader Device Solutions division posts strong results. Still, rejection is not widely seen as likely because non-memory operations employ relatively fewer workers.

Kwak Yong-hee, Hankyung.com reporter kyh@hankyung.com

Won Jong-hwan, Hankyung.com reporter won0403@hankyung.com