[News Today] Samsung union rally over bonus pay

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Samsung Electronics, at the center of the memory chip supercycle, is now facing escalating labor tensions over performance-based bonuses. A union representing more than half of the workforce held a large-scale rally demanding higher bonuses. Around 40,000 workers turned out. And the union is now warning of a general strike next month.

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An eight-lane road in front of Samsung Electronics Pyeongtaek campus is filled with employees wearing black vests.

Around 40,000 workers, according to police estimates, attended a union rally.

That's roughly a third of Samsung Electronics workers in Korea.

Their key demand is higher performance-based bonuses.

Choi Seung-ho / Chair, Samsung Electronics Labor Union

If there’s no fair compensation for workers, who will be responsible for the future?

They want 15% of operating profit to be distributed as bonus and for the cap on bonuses to be scrapped.

The participants also demand better conditions than SK hynix which offers 10% of operating profit as bonus pay.

The company says it can accept setting bonuses as a certain percentage of operating profit, but an upper cap can't be removed.

This is because unlike SK hynix, Samsung operates across various businesses outside of memory chips such as home appliance and mobile. As such, removing the cap can create large disparity among different divisions.

Talks have fallen through and the union is set to hold an 18-day general strike from May 21.

Samsung Labor Union member /

The May strike is definitely going ahead. Many around me are encouraging participation.

The company says it will pursue all possible means, including litigation.

The first hearing in an injunction request filed by Samsung to ban what it calls illegal strikes will be held next Wednesday at Suwon District Court.