'Sea of Black' Sweeps Pyeongtaek... 40,000 Samsung Union Members Unite in Call to Abolish Performance Bonus Cap

Joint Struggle Headquarters of Samsung’s Cross-Company Union
Resolution Rally in Front of Pyeongtaek Campus
General Strike Announced for May 21

At 2:00 p.m. on April 23, the eight-lane road in front of Samsung Electronics' Pyeongtaek Campus, the world's largest semiconductor production base, was engulfed in a massive "sea of black" instead of its usual bustle. This was the scene of the Samsung Electronics Labor Union's resolution rally, described as a prelude to an all-out strike.

According to organizers, 40,000 union members gathered at the site that day. This marks the largest collective action in the history of labor-management relations at Samsung Electronics. Under the midday sun, the black vests worn by the participants stood in stark contrast to the gray tones of the semiconductor complex. Each time the voices of the union executive committee echoed through loudspeakers and struck the outer walls of the factory, the assembled union members clenched their fists in unison and chanted, "Struggle."

On the 23rd, union members dressed in black vests shouted slogans at the Samsung Electronics Union Joint Struggle Headquarters rally held in front of Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province. Photo by Jin-Young Kim

The union's demands were clear: ▲ Transparency in the criteria for calculating performance bonuses ▲ Removal of the performance bonus cap set at 50% of annual salary ▲ Formal allocation of 15% of operating profit as a bonus pool. Choi Seungho, Chairman of the Samsung Electronics Branch of the Cross-Company Labor Union, who took the stage to deliver a speech, explained the background of the struggle, stating, "Although we have faithfully engaged in negotiations for four months since talks began in December last year, we have received nothing in return. We can no longer tolerate the management's attitude of ending negotiations with one-off rewards, while ignoring demands for transparency and the institutionalization of cap removal."

Chairman Choi went on to stress, "At a time when the nation's top science and engineering talent is choosing different paths, without fair compensation, no one can take responsibility for Korea's future industries. This struggle is not simply a wage struggle, but a fight to set things right for the future of Samsung Electronics and the future of Korea's STEM fields."

At the resolution rally of the Samsung Electronics Union Joint Struggle Headquarters held on the 23rd in front of Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province, the union executive committee members are shouting slogans. Photo by Kim Jinyoung

A particularly notable point at the rally was the union's official declaration that it would introduce a "check-off" system (union dues payroll deduction) as its next step. The check-off system is one in which the company withholds union dues from employees' monthly wages and transfers them directly to the union. Once implemented, this system would dramatically stabilize the union’s financial foundation and symbolically represent the company’s official recognition of the union as a legitimate negotiating partner. If an organization of 40,000 members secures such stable financial resources, the balance of power in future labor-management relations is likely to tilt decisively in favor of the union.

The Joint Struggle Headquarters issued an ultimatum, stating, "If today's shouts are met only with echoes, we will proceed with a general strike in May as previously announced." Specifically, they are considering an 18-day all-out strike from May 21 to June 7. Given that Samsung Electronics' estimated annual operating profit this year is around 300 trillion won, it is estimated that a shutdown of the semiconductor lines would result in daily losses of about 1 trillion won. In fact, when operations at the Pyeongtaek plant were halted for about 28 minutes due to a blackout in 2018, losses amounted to approximately 50 billion won. When extrapolated to a full day, this would equate to around 2.6 trillion won.

On the 23rd, Choi Seungho, Chairman of the Samsung Electronics Branch of the Samsung Electronics Union, conducted a presentation at the joint struggle headquarters rally of the Samsung Electronics labor union held in front of the Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province. Photo by Kim Jinyoung

Industry insiders have expressed concern about the union pushing ahead with a general strike that could cause such astronomical losses. If the strike results in production disruptions and the company is unable to deliver promised quantities on time, it could lead to a loss of trust and damage to brand reputation in the global market, where supply chain resilience is the top priority.

An industry official pointed out, "If the strike causes missed delivery deadlines for clients, it could escalate into disputes over breach of contract and liability for damages, potentially leading to additional economic losses. If the union claims a fair share of the company's operating profit, it must also be prepared to take responsibility for any damage caused by its own actions in order to remain persuasive."

Samsung Electronics maintains that, regardless of the strike, it is essential to continue the operation of facilities related to the safety of semiconductor plants. Since semiconductor production lines must operate 24 hours a day, any suspension due to a strike would inevitably result in significant losses not only for Samsung but for the entire global IT industry.

On the 23rd, union members shouted slogans holding placards at the Samsung Electronics Union Joint Struggle Headquarters rally held in front of the Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province. Samsung Electronics Union Joint Struggle Headquarters

The company recently requested, via an internal bulletin board, that at least the personnel involved in maintaining safety protection facilities and preventing the deterioration or spoilage of raw materials and products continue to work as usual. This workforce totals 12,800 people, or about 5% of all employees. In fact, Article 42, Paragraph 2 of the Trade Union Act prohibits any act that suspends, abolishes, or obstructs the normal operation and maintenance of workplace safety protection facilities. Violation of this law results in criminal penalties.

A Samsung Electronics spokesperson stated, "We will respond in accordance with the law and principles to protect the safety of employees and the local community, while minimizing customer damages, delivery delays, disruptions to the global supply chain, and burdens on the national economy."

On the 23rd, union members held placards and shouted slogans at the Samsung Electronics Labor Union Joint Struggle Headquarters Rally held in front of Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province. Samsung Electronics Labor Union Joint Struggle Headquarters

Meanwhile, near the site, about 20 members of the "Korea Shareholders' Activism Headquarters" held a counter rally. Min Kyungkwon (born 1979, startup operator), the organizer, expressed strong concerns about the current situation by reading a statement and answering questions, saying, "Amid the excessive demands of employees, 5 million shareholders of Samsung Electronics are being thoroughly excluded."

After the rally, Chairman Choi met with reporters and responded to shareholder criticism of the union's performance bonus demands, saying, "Our union members are also shareholders of Samsung Electronics. The removal of the bonus cap has already been achieved by competing companies, and TSMC allocates more than 10% of its operating profit as a bonus pool, so our demands are not excessive." He added, "Over the past four months alone, more than 200 union members have moved to SK hynix. This is by no means a normal structure. I would like to have a candid conversation with Chairman Lee Jae-yong."

On the 23rd, at the Samsung Electronics Pyeongtaek Campus in Pyeongtaek, Gyeonggi Province, Choi Seungho, Chair of the Samsung Electronics Branch of the Cross-Enterprise Labor Union, is looking over the rally site at the Samsung Electronics Labor Union Joint Struggle Headquarters Rally for Resolution. Samsung Electronics Labor Union Joint Struggle Headquarters

This content was produced with the assistance of AI translation services.