Action escalates dispute over performance-bonus cap and profit-sharing demands
Members of the Samsung Electronics Cross-Company Labor Union hold a strike resolution rally in the Godeok Samsung-ro area of Pyeongtaek, Gyeonggi Province, on the 23rd. (Photo provided by the Samsung Electronics Cross-Company Labor Union)
The National Samsung Electronics Union (NSEU) has begun an indefinite tent sit-in in front of the home of Samsung Electronics Chairman Lee Jae-yong.
In a notice, the NSEU announced on April 28, “Six members of the executive committee began a tent sit-in in front of Chairman Lee Jae-yong’s home yesterday (April 27), which will continue until the general strike rally on May 21.” They added, “We will shout directly in front of the actual decision-maker and reveal the hidden truth to the world.”
The union further emphasized its commitment to the general strike scheduled for next month, stating, “We ask you to turn the spark of struggle, which the executive committee is keeping alive, into a great torch with your overwhelming solidarity on May 21.”
Currently, Samsung Electronics and its labor union are in sharp conflict over the performance bonus system. The union plans to conduct a general strike for 18 days, from May 21 to June 7, if its demands, such as the abolition of the cap on performance bonuses, are not accepted.
However, voices from the business community and shareholders suggest that some of the union’s actions are excessive. This is because a general strike could cause massive losses amid fierce global competition for semiconductor supremacy, potentially harming numerous stakeholders. It is also pointed out that the tent sit-in in front of Chairman Lee Jae-yong’s home could lead to an invasion of privacy.
This sit-in is a show of force that came just one day after Minister of Trade, Industry and Energy Kim Jeong-gwan urged both labor and management to make a “magnanimous and mature decision” on April 27, stating, “Samsung Electronics is an asset of the national community, beyond just a single company.”
Minister Kim made a pointed comment, saying, “The fruits of Samsung Electronics are intertwined with various infrastructures, partner companies, over 4 million retail shareholders, and the National Pension Service, which holds about a 7.8% stake.” He added, “It is necessary to consider whether it is appropriate to divide the current profits only among internal members.”
Meanwhile, as Samsung Electronics faces the largest strike crisis in its history, it was revealed that the head of the majority union leading the strike has left for a vacation in Southeast Asia. With the chairman, who should be leading the struggle during this critical time, absent, voices from within the union are pointing to a lack of responsibility.
Choi Seung-ho, chairman of the Samsung Electronics branch of the Cross-Company Labor Union, was confirmed to have left for a week-long vacation in Southeast Asia. The Cross-Company Labor Union is Samsung Electronics’ only majority union, with over 74,000 members, and is the largest organization within the Joint Struggle Headquarters, which also includes the NSEU and the ‘Labor Union Companionship.’
Chairman Choi had previously pressured the company at the Pyeongtaek Campus rally on April 23, stating, “A strike of 18 days could inflict losses of up to 30 trillion won (approximately $20.3 billion).” However, his decision to take a long overseas vacation just five days after announcing the general strike has led to voices from within the union questioning the sincerity of the struggle.
The controversy is escalating, particularly after a post Chairman Choi made on the union’s website during his vacation became public.
In a post from the previous day, Chairman Choi demanded strong solidarity from the members, writing, “If you stand on the side of management even during the upcoming general strike and obstruct the dedication of your colleagues, it will be difficult to see you as colleagues anymore.”
Currently, the Samsung Electronics union is demanding the abolition of the 50% of annual salary cap on performance bonuses and the formalization of a system where 15% of operating profits are used as a resource for these bonuses. Based on this year’s projected operating profit (300 trillion won), this would amount to approximately 45 trillion won. If the demand is not met, they plan to launch a general strike for 18 days from May 21 to June 7. The union has announced a press conference-style rally in front of Chairman Lee Jae-yong’s home on the day the strike begins.
Amid these circumstances, and despite the government’s concerns, the NSEU has also initiated the tent sit-in in front of Chairman Lee’s home. As public pressure mounts, linking the union’s demands for bonuses to a ‘national economic crisis,’ the union appears to be mobilizing its forces at a symbolic location—the home of the company’s head.
On this day, the NSEU stated in a notice, “Six members of the executive committee began a tent sit-in in front of Chairman Lee Jae-yong’s home yesterday (April 27), which will continue until the general strike rally on May 21.” The union clarified the reason for the sit-in, stating, “Now, we will shout directly in front of the actual decision-maker and reveal the hidden truth to the world.”
Jung Suk-yee
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