Samsung's non-chip union goes to court to halt bonus vote

A union representing about 13,000 Samsung workers filed an injunction at Suwon District Court to halt a companywide bonus vote. The vote would confirm an average bonus of about 600 million won for memory chip division workers, while Device Experience division workers would receive company shares worth about 6 million won. The disparity is roughly 100 to one. The union objected on procedural grounds, claiming it was excluded from the ballot by the larger Cho-Kiup union representing memory workers. It said it was told it had no standing to participate. The pay package followed labor brinkmanship, including a planned walkout that was settled by the labor ministry, which removed a bonus cap and ringfenced 10.5% of annual operating profit for bonuses.

"A smaller Samsung Electronics union representing roughly 13,000 workers in the company's smartphones, televisions and home appliances divisions has filed an injunction at South Korea's Suwon District Court to halt an ongoing companywide vote on a bonus deal that would deliver a windfall to memory chip workers and almost nothing to everyone else."

"Around 57,000 Samsung workers began voting on Friday on a tentative pay agreement that would, if approved, confirm an average bonus of about 600 million won per person for the memory chip division, while staff in the Device Experience (DX) division, which makes the phones and TVs, receive company shares worth about 6 million won. The disparity is roughly 100 to one."

"The Donghaeng union's objection is procedural as much as financial. According to the Seoul Economic Daily, the union argues it was excluded from the ballot by the larger Cho-Kiup union, which represents the memory workers, because the majority union feared a DX bloc vote would sink the deal. The non-chip union said it filed the court action only after being told it had no standing to participate."

"Earlier in May, the 48,000-strong National Samsung Electronics Union signalled an 18-day walkout, which would have been the largest stoppage in the chip industry's history, before South Korea's labour ministry brokered a tentative settlement that abolished a long-standing cap on performance bonuses and ringfenced 10.5% of annual operating profit for staff. Forty per cent of that pool is reserved for the memory division. The remaining 60% is split across every other business unit at Samsung, including the foundry, the smartphone group, and the home appliances arm."

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