Samsung SDS’s First Union Surpasses Majority, Demands Collective Bargaining from Management

[Financial News] For the first time since Samsung SDS was founded, a majority union has been established.
According to Samsung SDS on the 7th, the number of members in the Samsung SDS branch of the Samsung Group super-enterprise union surpassed 5,650 at around 6:50 p.m. that day, reaching a majority of employees. Based on the status of affiliates in large business groups disclosed on June 1, the company had 11,287 employees, meaning the majority threshold was 5,644.
That morning, the union formally submitted a request for collective bargaining to Junehee Lee, CEO of Samsung SDS. Later that day, management posted a notice acknowledging the bargaining request, effectively beginning the negotiation process.
The company’s first union was formed amid a dispute over changes to the performance bonus system. Samsung SDS is pushing a sweeping overhaul that would abolish the existing cash-based Performance Incentive (PI) system and replace part of annual pay with company stock. It is currently conducting a vote among employees on the proposal.
The vote, originally set to end on the 29th of last month, was extended once until today. It will close at midnight.
However, employees opposing the overhaul argue that much of the bonus formula is tied to external indicators such as stock prices, and that the existing PI would no longer be included in severance pay calculations.
In a statement on the restructuring plan released that day, the union said, "The abolition of the PI system and the performance bonus criteria linked to stock price fluctuations failed to win support from the workplace." It added, "Repeated meetings and the excessive persuasion used to secure participation in the vote left deep wounds on employees who have trusted the company for many years."
The union asked management to temporarily suspend the push for the new personnel system overhaul, express regret over the unilateral process, and engage in joint discussions with the union on changes to working conditions and related systems.

honestly82@fnnews.com Kim Hyun-cheol Reporter