Samsung Electronics union members back changing chip bonus penalty for loss-making units
In short
Members of the Samsung Electronics branch of the Chogieop Union (초기업노동조합) voted 81.03% in favour of revising the penalty on loss-making units in the chip division's special bonus. The union said it will put the change into its 2027 bargaining demands. It said members of the memory and common units could receive 10 million to 20 million won less after tax if the change takes effect.
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The Samsung Electronics branch of the Samsung Group Chogieop Union (초기업노동조합) said on 22 October that its members approved a proposal to improve the penalty applied to loss-making units in the chip (DS) division's special bonus. In the vote, which ran from 14 October until 10:00 on 22 October, 26,947 of the 33,256 participating members voted in favour, or 81.03%. [ 1 , 2 , 3 ]
Yonhap gave the participation by unit: 13,517 from memory, 9,744 from common organisations, 6,138 from foundry, 3,179 from System LSI, 197 from CSS (power semiconductors) and 481 others. The union said it will reflect the change to the payout criteria for loss-making units in its 2027 bargaining demands. [ 1 ]
In May, Samsung Electronics labour and management agreed in the wage talks to create a special bonus for the DS division funded at 10.5% of the division's operating profit, according to Yonhap and Newsis. Chosun Ilbo described the base as the division's business performance. Under the arrangement, 40% of the pool goes to the whole division and 60% is paid by unit performance. [ 1 , 2 , 3 ]
Chosun Ilbo reported that loss-making units were to receive 60% of the common payout rate, with the start deferred by a year so that it applies from 2027 results. It also said the interim agreement was approved by members on 27 May with 73.7% in favour. [ 3 ]
The outlets said concern had been raised that, once the penalty applies from next year, the bonus gap would widen between the memory unit and the loss-making System LSI and foundry units. Yonhap reported that the union said memory and common-organisation members could receive about 10 million to 20 million won less after tax if the change is reflected. It said the union is pursuing the change for the unity of the whole DS division and to narrow the bonus gap. [ 1 , 2 , 3 ]
Union chairman Choi Seung-ho (최승호) said the union would prepare the DS loss penalty improvement demand as a bargaining item. Newsis quoted him as saying that members' approval, even though payouts between units could change, was a decision to trust the union. He also said securing bargaining-representative status in the December process of unifying bargaining channels would pose no problem and that the union would bargain alone in 2027. [ 1 , 2 ]
Newsis and Chosun Ilbo reported that disagreement with other unions continues. The Chogieop Union asked the National Samsung Electronics Union (전국삼성전자노동조합) and the Donghaeng (동행) union on 16 October to submit demands to it. The National Samsung Electronics Union said submitting demands to a particular union before a bargaining representative is confirmed is inappropriate. Newsis said Donghaeng replied on 20 October that there was no legal basis to demand this and proposed a joint bargaining group. [ 2 , 3 ]
Why it matters
The outcome could reopen how the special bonus agreed in May is split between the profitable memory unit and the loss-making System LSI and foundry units. The documents also show continuing disagreement among Samsung Electronics unions over how 2027 bargaining will be conducted.
Key facts
- In a vote held from 14 October until 10:00 on 22 October, 26,947 of 33,256 participating members (81.03%) approved the 'DS loss penalty improvement' proposal. [ 1 , 2 , 3 ]
- The union plans to include the change to the payout criteria for loss-making units in its 2027 bargaining demands. [ 1 , 2 , 3 ]
- In May, Samsung Electronics labour and management agreed on a special bonus for the chip (DS) division, with 40% of the pool shared across the whole division and 60% paid according to each unit's results. [ 1 , 2 , 3 ]
- Voters by unit: memory 13,517, common organisations 9,744, foundry 6,138, System LSI 3,179, CSS (power semiconductors) 197, others 481. [ 1 ]
- The union said memory and common-organisation members could receive about 10 million to 20 million won less after tax if the change is applied. [ 1 ]
- The National Samsung Electronics Union and the Donghaeng union have not agreed to the Chogieop Union's request to submit bargaining demands to it. [ 2 , 3 ]
Confirmed by several sources
- The Chogieop Union announced on 22 October that its members approved the proposal to improve the loss-making unit penalty, with 81.03% (26,947 of 33,256 voters) in favour. [ 1 , 2 , 3 ]
- The union will reflect the proposal in its 2027 bargaining demands. [ 1 , 2 , 3 ]
- The May wage agreement created a special bonus for the DS division funded at 10.5%, with 40% shared across the division and 60% paid by unit performance. [ 1 , 2 , 3 ]
Still unclear
- What the 10.5% funding is calculated from. Two outlets say it is 10.5% of DS division operating profit, while Chosun Ilbo says 10.5% of DS division business performance.
- The exact terms of the penalty for loss-making units. Only Chosun Ilbo says loss-making units get 60% of the common payout rate, applied from 2027 results; the other documents do not give the rate.
- Whether the union will hold the bargaining position it says it will have in 2027. The union's chairman said it will have no problem securing bargaining-representative status in the December unification process, while the other unions say that status is not yet confirmed.