Samsung Electronics Shareholder Group: "Support for Labor-Management Post-Mediation... No Behind-Closed-Doors Agreements" (Comprehensive)

Shareholder Activism Headquarters Issues Appeal on ACT Platform
Ongoing Union-Union Conflict Over Performance Bonus Disparities Within Struggle Headquarters

As Samsung Electronics management and labor representatives have once again entered into official negotiations through government mediation, a shareholder group of Samsung Electronics has called on both sides to adopt a forward-looking approach to negotiations in order to prevent a strike.

On May 10, the Korea Shareholder Activism Headquarters (Shareholder Headquarters) issued an appeal on the shareholder action platform ACT, stating, "In the urgent climate of global innovation competition, we hope that the union and management will engage in bold negotiations for the future." The organization also presented principles that should be upheld during the post-mediation process between Samsung Electronics' labor and management, which is scheduled for May 11-12.

The Shareholder Headquarters first reaffirmed its stance that the union's demand for a performance bonus equivalent to 15% of operating profit should not be accepted. They stated, "A uniform cash compensation of 15% of operating profit for all employees is a profit distribution method that is neither implemented nor anticipated by any global company in the semiconductor sector." The organization argued that "the types of performance bonuses claimed by unions at domestic competitor companies are based on special circumstances, specifically as compensation for poor treatment in the past." According to the Shareholder Headquarters, Samsung Electronics employees, who have enjoyed the best treatment in the country, have little grounds to demand such compensation from the same perspective.

The Shareholder Headquarters further emphasized, "Employees and shareholders are the most important members of the company and are bound together as a community of shared destiny tied to the future of Samsung Electronics," adding, "If employees only demand financial incentives for short-term achievements, and shareholders only claim monetary compensation, such behavior will only serve to tear the company apart."

The organization also expressed its intention to pursue legal action if the union's proposal for performance bonuses is accepted as originally drafted. The Shareholder Headquarters declared, "If the union is fixated solely on short-term financial distribution and, under the pretext of a strike, changes the principles of profit sharing and pushes through a backroom agreement, we will take legal action to cancel such agreements due to statutory duress and seek legal remedies for any unjust enrichment arising from these agreements."

The Shareholder Headquarters also warned management that it will hold them accountable if they succumb to the union's threat of a general strike. The organization stated, "While an increase in performance-based compensation is expected, it is essential to first clearly define what constitutes 'performance' and establish methods for allocating the results among the various contributing parties." They added, "If labor-management negotiations are conducted behind closed doors without establishing clear principles for defining and allocating performance, we will hold the current management fully accountable under all applicable laws."

The Shareholder Headquarters continued, "Competitors in the memory sector such as SK hynix in Korea, Micron in the United States, and ChangXin Memory Technologies in China are watching closely for opportunities presented by the current strike situation and are already seeking to leverage this for their own benefit if the strike materializes." The organization added, "We firmly oppose any negotiations that would undermine the company's future value, which affects the stock price, or violate the ordinary dividend rights of shareholders."

With Samsung Electronics preparing for its second-ever general strike in company history on May 21 and labor authorities intervening to mediate last-minute negotiations, internal discord continues within the union's joint struggle committee over the negotiation agenda. The two major unions within the committee—the National Samsung Electronics Union (NSEU) and Donghaeng, a union composed mainly of Device eXperience (DX) division staff—are demanding that a common company-wide fund be established to address the unfair performance bonus structure between the DX and Device Solutions (DS) divisions.

However, Choi Seungho, head of the Super-Enterprise Union's Samsung Electronics chapter, who represents labor in this post-mediation process, is maintaining his stance that the company-wide fund will not be included in the agenda. Choi stated, "In the current situation, where the three unions are jointly conducting the 2026 wage negotiations, adding new items could provide the management with an excuse for 'insincere bargaining' and could serve as grounds to demand a reduction in the existing demands, thereby weakening our bargaining power." He added, "Comprehensive company-wide profit-sharing will be discussed in depth during the 2027 wage negotiations."

The Super-Enterprise Union, which has recently acquired majority status and is leading the strike, is estimated to have approximately 80% of its 73,000 members belonging to the DS (Device Solutions) division. It is also reported that Choi has so far not raised any issues regarding the treatment of DX division employees in negotiations with management.

Previously, Donghaeng withdrew from the joint struggle committee, claiming that the Super-Enterprise Union was pushing for a performance bonus system that favored only the semiconductor division. The NSEU also demanded an apology from Choi, alleging he made threatening remarks about excluding them from negotiations.

Samsung Electronics Union Struggle Rally, Union Members Chanting Slogans. Photo by Yonhap News Agency

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