Samsung Electronics unions are facing controversy as they pursue separate negotiations for the Device Experience (DX) and Device Solutions (DS) divisions while simultaneously demanding a shared resource pool for overall performance rewards. Critics argue that the call for separate negotiations based on the unique circumstances of each division contradicts the demand for a collective compensation fund.
According to industry sources, the super union at Samsung Electronics is advocating for the separation of negotiations between the DS and DX divisions. On May 28, the union announced a restructuring of its negotiation system into a 'two-track' approach, dividing its leadership into five members from DS and three from DX.
Following the reappointment of its chairperson on June 30, the union expressed its intention to utilize the labor commission's system for separate negotiations for the DS division. On July 16, it even established a policy committee for the DS division to further organize for these separate negotiations.
In contrast, another Samsung Electronics union, Donghaeng, demanded the preemptive securing and transparent disclosure of a company-wide resource pool for all employees during a rally held in Suwon on the same day. They are also calling for the distribution of 1,000 shares of company stock per DX employee, seeking to expand compensation at the corporate level regardless of individual division performance.
Critics in the business community have pointed out the contradiction in wanting separate negotiations while also seeking to share financial resources. They argue that while the differing business environments and performances of DX and DS justify separate negotiations, it is inconsistent to request a unified resource pool for compensation.
Notably, Samsung Electronics has been operating the DX and DS divisions as effectively independent entities since 2017, separating their finances and human resources. Performance-based bonuses are also determined based on the results of each division and business unit.
For instance, in 2024, during a semiconductor downturn, DS employees did not receive excess profit bonuses (OPI), while the MX division, responsible for smartphones, received 50% of their salaries as OPI. At that time, the poor performance of DS was cited as the reason for not distributing DX bonuses to semiconductor employees.
The prevailing view in the business community is that if the union acknowledges the differences in performance and working conditions by separating negotiation units, then compensation should also be based on the respective performance of each division. Conversely, if there is a need to share performance and resources at the corporate level, it would be more logical to maintain the existing negotiation system that treats DX and DS as a single unit.
At the company level, Samsung Electronics has implemented some measures to improve overall treatment. The company has provided DX employees with company stock worth approximately 6 million won each and has applied a 6.2% wage increase across the board.
The demands for separate negotiations from the super union and the call for a shared resource pool from Donghaeng represent different positions from separate unions, making it difficult to view them as conflicting claims from a single union. Nevertheless, the emergence of these opposing demands for 'independence by division' and 'corporate performance sharing' highlights the need for alignment among the unions in future negotiations.
A business insider remarked, "If negotiations are separated due to differing management environments, then performance and compensation should also be linked to each division's results. If unions appear to demand separation when performance is good but seek corporate resources when compensation is needed, it could undermine the credibility of their demands."
They added, "In companies like Samsung Electronics, where there are significant performance disparities between divisions, the question of how much performance to share is sensitive for both labor and management. It is essential for the unions to establish consistent criteria on whether to apply separate negotiations or a shared corporate resource pool."
* This article has been translated by AI.
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