Samsung Union Seeks Bonus Gap Relief

Choi Seung-ho, head of the Samsung Electronics branch of the Super Enterprise Labor Union (Yonhap) The Super Enterprise Labor Union, the largest labor union at Samsung Electronics, is pushing for a plan to alleviate the performance bonus disadvantages for deficit-running divisions within the Device Solutions (DS) Unit, which is in charge of the semiconductor business. The intention is to improve the issue where the performance gap between the Memory Business and the Foundry and System LSI Businesses leads to a difference in performance bonuses. According to the Samsung Electronics branch of the Samsung Group Super Enterprise Labor Union on Oct. 22, the agenda was passed with an approval rate of 81.03% in the union member vote on the ‘DS Deficit Penalty Improvement Agenda,’ which was held from Oct. 14 to 10:00 a.m. on Oct. 22. A total of 33,256 union members participated in the vote, and among them, 26,947 approved. The number of voting participants by division includes 13,517 from the Memory Business, 9,744 from the common organization, 6,138 from the Foundry Business, and 3,179 from the System LSI Business. This agenda is to improve the payment standards for the DS Unit's special management performance bonus, which labor and management at Samsung Electronics agreed upon in May. At that time, labor and management newly established a special performance bonus system funded by 10.5% of the DS Unit's business performance. They decided to distribute 40% of the performance bonus financial resources to the entire DS Unit and differentially pay the remaining 60% according to the performance of each division. However, they decided to place a penalty on deficit-running divisions, applying only 60% even in the common payment rate starting from the performance portion in 2027. Accordingly, concerns were raised that while the Memory Business earns high profits due to the semiconductor boom, the performance bonus gap could widen further for the Foundry and System LSI Businesses, where deficits are continuing. This vote is a procedure that decided on the negotiation agenda within the labor union. Based on this, the labor union is expected to make the change in performance bonus payment standards an agenda item and begin negotiations with the management. If this improvement plan is actually reflected in the negotiations, there is a possibility that the performance bonuses for surplus-running divisions, such as the Memory Business, may be partially reduced. Nevertheless, as more than 80% of the union members approved, strength was added to the demand that the compensation gap among divisions must be alleviated. Choi Seung-ho, head of the Samsung Electronics branch of the Super Enterprise Labor Union, stated, “The fact that they approved even though the performance bonuses among divisions could fluctuate if the deficit penalty is improved is a decision by the union members to trust the Super Enterprise Labor Union,” and added, “We will prepare the improvement request as a negotiation agenda item according to the voting results.” The labor union plans to secure the status of the representative bargaining labor union in the single bargaining channel procedure this coming December and conduct next year’s negotiations independently. Choi emphasized, “I will protect the DS special performance bonus system to the end.”