A Critical Week for Samsung Electronics' Wage Agreement: Where Will the Votes of 87,000 Union Members Go?

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\r\n[Financial News] As voting begins on Samsung Electronics' tentative wage agreement, industry watchers are leaning toward approval, citing the removal of the cap on special performance bonuses and a larger wage increase. However, dissatisfaction with the compensation system continues, especially in the non-memory and DX (Device eXperience) Division, drawing close attention to the outcome.
\r\nAccording to the industry on the 22nd, the Joint Struggle Headquarters formed by the Samsung Electronics Branch of the National Samsung Electronics Labor Union and the National Samsung Electronics Union will hold its third general meeting from 10 a.m. on this day until 10 a.m. on the 27th for all union members. The meeting will include a yes-or-no vote on whether to accept the tentative wage agreement.
A total of 87,136 members are eligible to vote. That includes 70,850 members of the corporate union and 16,286 members of the National Samsung Electronics Union, accounting for more than half of Samsung Electronics' roughly 130,000 employees.
The tentative agreement will be finalized if more than half of eligible members participate and a majority of those who vote approve it. If it is rejected, labor and management will return to negotiations from scratch.
The industry is relatively optimistic about approval. That is because the Device Solutions division makes up a large share of the union membership, and workers have grown weary after prolonged negotiations. The inclusion of practical compensation measures, such as removing the cap on special performance bonuses and raising wages, is also seen as a positive factor.
The vote will be conducted entirely through mobile electronic voting. The non-face-to-face format was introduced in consideration of the 24-hour shift system at DS workplaces and the nationwide nature of the company’s operations. Members can participate by accessing a designated link or the union’s dedicated app on their smartphones. The union has also left open the possibility of extending the voting period if needed to secure a valid turnout.
Still, some analysts say it is difficult to conclude that the internal mood is overwhelmingly in favor. Within the non-memory business and the DX division, some employees have already voiced dissatisfaction and opposition to the agreement.
In particular, employees in the DX division who are unhappy with the performance bonus structure centered on the DS division are reportedly joining the union in an effort to defeat the agreement. The number of members in the Samsung Electronics Labor Union rose to 12,298 as of this day, up roughly sixfold from about 2,000 in March.
Choi Seung-ho, chairman of the corporate union, told members the previous day, "This agreement may fall short of expectations in some respects," and added, "I will treat the result of the tentative agreement vote as the scorecard given to the corporate union by its members."
Meanwhile, if the tentative agreement is rejected, a backlash is expected. The agreement would be immediately scrapped, and labor and management would return to the bargaining table. If negotiations break down again after that, the union may pursue legal labor action and a general strike after going through mediation procedures with the labor relations commission.
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moving@fnnews.com Lee Dong-hyeok Reporter