Chairperson Choi Seungho: "Labor-Management Proposals Remain Far Apart... Will Exit if No Adjustment Plan in Two Hours"

Second Post-Adjustment Meeting Between Samsung Electronics Labor and Management
Negotiations Continue for a Second Day After 11-Hour Session
Union Demands "15% of Operating Profit" vs Management's "10%"
Central Labor Relations Commission May Seek Additional Mediation

As the post-adjustment meeting regarding the performance-based bonus conflict between Samsung Electronics labor and management was underway on May 12, Choi Seungho, Chairperson of the Samsung Electronics Branch of the Super Large Enterprise Labor Union, stated, "Labor and management have discussed the agenda, but the gap between the proposals has not narrowed."

During an interview with reporters at the second post-adjustment meeting held at the Central Labor Relations Commission in Sejong City that afternoon, Choi said, "We have continuously demanded the allocation of 15% of operating profit as the bonus pool and institutionalization of the performance-based bonus system. The company is still insisting on 10% of operating profit and repeatedly stating that non-memory business units cannot be included."

Reportedly, the union suggested that if linking bonuses to 15% of operating profit is difficult, the company should expand the OPI (Over-Profit Incentive) stock compensation system and institutionalize performance-based bonuses, even if the percentage is 1–2% lower. Under the OPI stock compensation system, up to 50% of bonuses can be received in company shares.

Choi added, "We have requested the Central Labor Relations Commission to present an adjustment proposal, and we have been waiting for about three hours. If there is no result within two hours (by 8:20 p.m.), we will consider the negotiations broken down and leave the meeting room."

Choi Seungho, Chairman of the Samsung Electronics Branch of the Ultra-Enterprise Union, is attending the second post-adjustment meeting held on the 12th at the Central Labor Relations Commission in the Government Complex Sejong, Sejong City, and is responding to reporters' questions. Yonhap News Agency.

The previous day, labor and management held the first post-adjustment meeting at the same location from 10 a.m. to 9:30 p.m., a total of 11 hours and 30 minutes, but failed to reach a conclusion. On the second day, the adjustment meeting, which began at 10 a.m., continued past 7 p.m.

The two sides remain at odds over the abolition of the performance-based bonus cap and its institutionalization. According to Samsung Electronics, the current system pays out up to 50% of annual salary as a bonus, equivalent to 10% of Economic Value Added (EVA). The union is demanding the removal of this cap and the institutionalization of a system where approximately 15% of operating profit is distributed as bonuses. In contrast, management has proposed that if the Device Solutions (DS) division, which is under strong union pressure for higher bonuses, achieves the top position in domestic industry sales and operating profit, it will allocate at least 10% of operating profit for bonuses in order to guarantee a payout rate higher than competitors.

Another point of contention is the size of performance-based bonuses for the non-memory business segment. While Samsung Electronics Labor Union Together (Donghaeng Union) and the National Samsung Electronics Labor Union, both of which have a high proportion of Device Experience (DX) division members, are advocating for equal bonus distribution through securing a common company-wide bonus pool, management maintains that it is difficult to expand bonuses to business units operating at a loss.

Meanwhile, there is a possibility that the post-adjustment process, originally scheduled for two days, may be extended. Since there is no legal time limit for post-adjustment, the process can be flexibly managed according to labor-management agreements. The Central Labor Relations Commission plans to encourage an extension and additional negotiations if it determines that common ground remains, even if either side requests to halt the adjustment.

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