Samsung Electronics' largest union collapses... 18,000 members leave in just a month and a half

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\r\n[Financial News] The Samsung Group Supra-Enterprise Labor Union, Samsung Electronics Chapter, Samsung Electronics' largest union, has lost its majority-union status. The loss follows a surge in defections as internal backlash grew over the bonus distribution plan after the wage and collective bargaining agreement was settled.
\r\nAs of 3 p.m. on the 4th, the union had 58,270 members, industry sources said. That is below half of Samsung Electronics Co., Ltd.'s 128,881 employees at the end of last year, or 64,440, meaning the union has lost its majority status.
During this year's wage negotiations, the union quickly expanded its influence, with membership surpassing 76,000, and in April it was recognized by the Ministry of Employment and Labor (MOEL) as both a majority union and the legal representative of workers. However, after the tentative wage agreement and collective bargaining deal on the 20th of last month, members continued to leave, causing a sharp drop in membership. After the 70,000-member mark was broken on the 28th of last month, more than 10,000 additional members left the union within a week.
Industry observers say the bonus distribution method was a major factor behind the mass exodus. If Samsung Electronics Co., Ltd.'s operating profit reaches 30 trillion won this year, employees in the memory division could receive up to 600 million won in combined special performance bonuses and profit-sharing incentives (OPI). By contrast, employees in the Device eXperience Division (DX Division) may receive only Samsung stock worth about 6 million won per person.
Discontent also grew among non-memory employees in the Device Solutions division, including those in Samsung System LSI Division and foundry operations. Critics said the agreed ratio of 60% to 40% reduced the share for loss-making divisions, instead of the union's original proposal of 70% for common DS distribution and 30% for division-specific allocation.
With the loss of majority-union status, the union's influence is expected to weaken. Going forward, it will have to go through a process of consolidating bargaining channels with the National Samsung Electronics Union and Samsung Electronics Labor Union Donghaeng, making it difficult to maintain the same exclusive bargaining power as before.
Changes to the labor-management council are also unavoidable. Until now, the union had led the council by directly appointing worker representatives as a majority union, but it will no longer be able to exercise that authority.
Members who have left are now moving to other unions. The National Samsung Electronics Union grew from around 16,000 members on the 20th of last month to 20,968 on this day, while the Donghaeng Labor Union surged from the 2,000 range to 21,015.
Meanwhile, the union plans to reorganize itself. It intends to push ahead with a 'two-track bargaining system' by separating the executive teams for the Device Solutions (DS) and DX divisions, and it will seek to stabilize the organization through a vote of confidence for the chairman on the 17th.
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moving@fnnews.com Lee Dong-hyeok Reporter