The Samsung Electronics DX (Device Experience) division's labor union, Donghaeng, has demanded that management not shift the blame for declining profitability onto employees, calling for a company-wide compensation system.
On August 21, the union held a rally near Samsung's Seocho office in Seoul, asserting, "The company is shifting all responsibility for its management failures onto employees."
The union criticized, "While executives are compensated based on overall company performance, employees are expected to fend for themselves within their respective divisions. The costs of management failures are being passed on to employees in the form of cost-cutting and workforce reductions."
Among the union's demands are: 1,000 shares of company stock for each DX division employee, the establishment of a common fund linked to overall company performance, and a uniform base salary increase across the company.
Specifically, the union cited the need for the 1,000 shares of stock for DX employees, arguing that past successes during the DX division's boom years contributed to strengthening the company's overall competitiveness through reinvestment in areas like semiconductors. They contend that since the DX division contributed to company-wide investments instead of receiving additional performance bonuses, corresponding compensation is warranted.
The union also called for a compensation system that allocates a certain percentage of overall company performance to a common fund, which would then be distributed based on divisional performance. This aims to create a structure where overall company performance is shared, moving away from the current system where rewards vary significantly based on divisional results.
However, some critics argue that the timing of the rally lacks justification, as Samsung Electronics and the labor union had already reached an agreement on wage negotiations for 2026 in May. The demand to reopen negotiations months later has been labeled a "backward rally" by some observers.
Approximately 2,000 participants attended the rally, according to police estimates, chanting slogans such as, "Take responsibility for management failures" as they marched near Samsung's Seocho office.
* This article has been translated by AI.
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