SEOUL – Internal conflict within Samsung Electronics' labor unions has reached a fever pitch as the company prepares for crucial government-mediated negotiations. While the company and its workers are set to return to the bargaining table, a sharp divide between different union factions over how performance-based bonuses should be distributed is threatening to derail collective action.
According to industry sources on May 10, "post-mediation" procedures—seen as the final official opportunity to avert a full-scale strike—are scheduled for May 11 and 12. However, the atmosphere is heavy with discord within the Joint Union Strike Committee over the inclusion of "company-wide common funds" in their list of demands.
The crux of the dispute lies in whether the profit-sharing scheme should apply exclusively to high-performing sectors or be distributed across the entire workforce. The National Samsung Electronics Union (NSEU), the company’s second-largest union, along with members from the Device eXperience (DX) division—which oversees smartphones and home appliances—are pushing for a system where profits are shared more equitably across all departments.
In contrast, Choi Seung-ho, head of the Samsung Electronics branch of the Super-Enterprise Labor Union (the largest union at the company), maintains a firm stance against including company-wide common funds in the negotiations. Choi has primarily focused on securing higher bonuses for the Device Solutions (DS) division, which handles semiconductors. The Super-Enterprise Labor Union holds significant leverage as the majority of its 73,000 members are concentrated within the DS division, which has historically been the company's primary profit engine.
This "DS-centric" approach has sparked a backlash from other factions. Critics within the labor movement are accusing the Super-Enterprise Union of an "authoritarian" style of leadership. Some members are now calling for the revocation of the bargaining power previously delegated to the Super-Enterprise Union and demanding the replacement of labor-side representatives in the upcoming post-mediation talks.
"The current leadership is ignoring the interests of workers in the DX division whose performances have recently fluctuated," one union insider remarked. "If the goal is solidarity, the benefits must be shared across the entire company, not just in one sector."
Adding to the complexity, the "Dong-haeng" Union, the third-largest labor group, has already withdrawn from the Joint Strike Committee. They have sent official documents to the leadership demanding transparency in negotiation information and an end to discriminatory treatment between different business units.
Meanwhile, the gap between the labor unions and Samsung management remains wide. While the company has pledged "industry-leading treatment" for its memory business employees, the unions are steadfast in their demand for 15% of total operating profit to be allocated for bonuses and the removal of the current cap on performance-based pay.
As the May 11 deadline approaches, industry observers are watching closely to see if the unions can resolve their internal disputes. Without a unified front, the labor side may find its leverage weakened during the final mediation sessions, potentially leading to a fragmented response and further labor instability at the world’s largest memory chipmaker.
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