Head of the Samsung Electronics Labor Union, whose membership is largely made up of Device eXperience (DX) division employees, holds a press conference on May 22 saying they oppose the tentative wage agreement that focuses on setting performance bonuses of the Device Solutions (DS) division employees. [NEWS1]
While Samsung Electronics’ semiconductor employees welcomed the tentative wage agreement, complaints grew among employees in the home appliances division over a bonus structure centered on the memory chip business.
The Suwon branch of the National Samsung Electronics Union and Samsung Electronics Labor Union said they oppose the tentative wage agreement, holding a press conference in front of the Samsung Digital City building in Suwon, Gyeonggi, on Friday.
“The negotiations turned into bonus talks for the memory business division,” the unions said. “Core demands such as greater transparency in the bonus system and the removal of payout caps were not properly reflected.”
Samsung Electronics Labor Union — whose membership is largely made up of Device eXperience (DX) division employees in the smartphone and home appliances business — stated that the DX division supported the company’s earnings during downturns in the semiconductor industry. However, the recent tentative agreement focused heavily on bonuses for the semiconductor business, or the Device Solutions (DS) division.
“We aren't simply asking for more money,” said Lee Ho-seop, head of the Suwon branch of the National Samsung Electronics Union. “We want recognition for the DX division’s contributions and sacrifices. Samsung Electronics is one company, but the bonus system is becoming excessively divided.”
The unions claim the tentative agreement was structured primarily around the DS division, deepening deprivation among DX employees.
Employees vented frustration online with phrases such as “DX passing” and “mourning the DX division” in online communities and Samsung Electronics' internal message boards.
Samsung Electronics' headquarters in Suwon, Gyeonggi, on May 22. [NEWS1]
Industry observers say it is unusual for the DX division, which has traditionally remained relatively quiet, to express dissatisfaction openly.
Signs of a power shift within the labor movement are also emerging.
Samsung Electronics Labor Union claimed its membership increased by around 10,000 in a single day following the announcement of the tentative agreement. According to the union, it previously had around 2,000 members.
The National Samsung Electronics Union also reportedly experienced temporary server disruptions on its website because of a surge in new registrations.
Disputes over voting rights could become another issue.
The Samsung Electronics branch of the Korean Metal Workers’ Union reportedly maintains that voting eligibility remains unclear for members of the Samsung Electronics Labor Union, which withdrew from the joint labor coalition
Samsung Electronics Labor Union pushed back against the position, saying excluding union members who participated in joint bargaining “could constitute a legal violation.”
The unions also raised concerns over a clause in the meeting minutes of the tentative agreement, which stated the withdrawal of various civil and criminal lawsuits.
Labor Minister Kim Young-hoon, center, Samsung Electronics' management negotiator Yeo Myung-koo, left, and Choi Seung-ho, right, head of the Samsung Electronics chapter of the Samsung Group United Union, shake hands after signing a tentative wage agreement. [YONHAP]
“Suspicion is spreading among employees that the company may have used lawsuits as a bargaining tool,” the unions said. “There needs to be an explanation as to why the lawsuit withdrawals were included in the labor-management agreement process.”
DX division employees are also demanding direct talks with Roh Tae-moon, president and chief executive of the DX division.
“The sense of frustration within the DX division has grown throughout the monthslong wage negotiations, but communication from management has been insufficient,” the unions said. “We need to discuss ways to improve the organization's atmosphere and restore morale.”
Samsung Electronics’ joint labor coalition began a vote on the tentative agreement at 2 p.m. Friday. The vote will continue through 10 a.m. Wednesday.
The agreement will be finalized if a majority of registered union members participate and a majority of those participating members vote in favor.
However, some say discussions of a general strike could reemerge if the agreement is rejected.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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