Samsung Electronics' largest union, the Federation of Samsung Unions' Samsung Electronics branch (FSU), overwhelmingly approved the re-election of Chair Choi Seung-ho. This re-election reaffirms trust in Choi's leadership and effectively divides the union landscape into two factions: DS (semiconductors) and DX (finished products). Starting with next year's wage negotiations, the FSU announced plans to negotiate separately for the DS division, marking a shift toward independent paths for each business sector.
Immediately following the approval of his re-election on June 30, Choi stated, "We will utilize the labor committee's division negotiation system to advance negotiations for the DS division," adding, "Even if the separation is not recognized, we will strive for better outcomes for the DS division through independent negotiations." This declaration indicates a complete shift of the FSU's focus toward the semiconductor sector. Choi also announced plans to establish a policy committee for the DS division to directly address sector-specific issues in negotiations.
This move aligns with the recent rejection of a joint negotiation proposal for 2027 from the Donghaeng Union, which focuses on the DX division. Choi emphasized, "Starting next year, we will prioritize unresolved issues in the DS division while allowing for sector-specific negotiations," effectively formalizing the separation of negotiations.
In contrast, the Donghaeng Union has recently secured over 26,000 members out of approximately 51,700 employees in the DX division, establishing a majority within that sector. As the FSU represents the DS division and the Donghaeng Union represents the DX division, next year's wage negotiations are likely to be restructured into sector-specific discussions.
The rift between the two unions became apparent during this year's wage negotiations. A tentative agreement led by the DS-focused FSU faced challenges but was ultimately passed. However, DX employees raised concerns about disparities in performance bonuses and the exclusion of minority union voting rights, leading to legal disputes. While the court did not recognize significant procedural flaws, dissatisfaction regarding relative deprivation and fairness among DX members continues to grow.
The FSU's recent decision to focus solely on the DS division is also related to changes in its membership composition. Once boasting over 76,000 members, the FSU's membership has recently declined to around 55,000. Meanwhile, the Donghaeng Union has rapidly expanded its presence in the DX division, achieving a majority status. Observers suggest that the FSU is shifting its strategy to enhance negotiating power centered around its core support base rather than maintaining overall majority representation.
Opinions suggest that Samsung Electronics' business structure is directly reflected in the union landscape. With the semiconductor sector thriving due to the AI boom, the DS division prioritizes performance bonuses and improved working conditions, while the DX division continues to struggle in mobile, TV, and home appliance markets, leading to differing interests. The limitations of uniting these two organizations under a single wage negotiation framework have become evident, raising concerns that the internal divisions within Samsung Electronics may deepen as separate negotiations based on sectoral interests emerge.
This atmosphere is spreading beyond Samsung Electronics to its affiliated companies. Recently, the Samsung Biologics union voted to change its organizational structure, deciding to withdraw from the FSU, while the Samsung Electro-Mechanics First Union also opted for an independent path. This decision reflects the belief that under the FSU's semiconductor-focused agenda, it would be challenging to secure effective negotiation power given the differing management environments and issues across subsidiaries.
* This article has been translated by AI.
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