Samsung Electronics deal fuels affiliate bonus demands

(Yonhap)

Samsung Electronics Co.’s labor deal is fueling discontent at other affiliates, where employees are increasingly questioning existing bonus systems.

According to electronics sources on Monday, employees at Samsung Display Co. and Samsung Electro-Mechanics Co., whose labor agreements are closely tied to those of Samsung Electronics, are growing increasingly frustrated after Samsung Electronics agreed to pay special bonuses of up to 550 million won ($364,000) to workers in its Device Solutions (DS) division.

Although unions at both affiliates have completed 2026 wage negotiations, industry officials expect tougher demands when collective bargaining talks resume in the second half.

If Samsung Electronics’ bonus formula were adopted, Samsung Display would allocate about 400 billion won for bonuses, equivalent to 10 percent of its projected operating profit of 4 trillion won this year, while Samsung Electro-Mechanics would set aside about 150 billion won, or 10 percent of its projected 1.58 trillion won operating profit.

Based on headcounts of 21,243 and 11,577 employees, respectively, payouts would amount to roughly 10 million won to 20 million won per employee.

Employees at both affiliates are also pushing for higher wage increases and changes to bonus calculation methods. Samsung Electronics’ DS division agreed to revise its Operating Profit Incentive (OPI) calculation method to 10 percent of operating profit from the economic value-added standard, while affiliates still use the EVA-based system.

Samsung Display’s union plans to discuss alternative bonus compensation schemes with management later this year. Samsung Electro-Mechanics is also expected to collect employee feedback on changing its OPI formula to either 20 percent of EVA or 10 percent of operating profit.

Meanwhile, Samsung Electronics’ Device eXperience (DX) division union said it plans to file an injunction on Tuesday to halt a vote on the tentative 2026 wage agreement.

The union had withdrawn from a joint bargaining group over claims DX employees’ views were being ignored. Samsung Electronics is holding the vote through Wednesday.