'Black Wave' Sweeps Pyeongtaek... 40,000 Samsung Union Members Unite to Demand Abolition of Bonus Cap

At 2:00 p.m. on April 23, the eight-lane road in front of Samsung Electronics’ Pyeongtaek Campus-known as the world’s largest semiconductor production base-was engulfed in a massive “black wave,” rather than its usual busy traffic. This was the site of the Samsung Electronics labor union’s rally, seen as a prelude to a full-scale strike.

According to the organizers, 40,000 union members gathered at the site. This marks the largest collective action in the history of labor relations at Samsung Electronics. Under the midday sun, the black vests worn by the participants stood in stark contrast to the gray semiconductor complex. Each time the voices of the union executives echoed through megaphones and struck the factory’s exterior walls, assembled members clenched their fists in unison and chanted, “Fight!”

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

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The union’s demands were clear: ▲ greater transparency in performance bonus calculation criteria, ▲ abolition of the cap limiting bonuses to 50% of annual salary, and ▲ formalization of a rule allocating 15% of operating profit as a performance bonus pool. Choi Seungho, Chair of the Samsung Electronics Branch of the Cross-Enterprise Labor Union, stated in his speech, “For the four months since negotiations began in December last year, we have faithfully participated in talks, but have received nothing in return. The management tried to conclude negotiations with a one-time bonus, while ignoring demands for transparency and institutionalizing the removal of the bonus cap. We can no longer tolerate such an attitude.”

Choi further emphasized, “As Korea’s top science and engineering talents are choosing other paths, no one can take responsibility for the future of our country’s industries without fair compensation. This struggle is not merely about wages-it is a fight for the future of Samsung Electronics and the future of Korea’s science and engineering sectors.”

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

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A particularly notable development at the rally was the union’s official declaration to introduce a “check-off” system (union dues deducted from salaries). Check-off refers to a system where the company deducts union dues from employees’ paychecks each month and remits them directly to the union. If implemented, this would dramatically stabilize the union’s financial base and also symbolize the company’s formal recognition of the union as a legitimate bargaining partner. Should this massive 40,000-member organization secure stable funding, the balance of power in future labor-management relations is likely to tilt decisively in favor of the union.

The Joint Struggle Headquarters issued a final ultimatum, warning, “If our cries today fall on deaf ears, we will proceed with a general strike in May as previously announced.” Specifically, they presented a plan for a full-scale strike lasting 18 days, from May 21 to June 7. Considering Samsung Electronics’ projected annual operating profit of approximately 300 trillion won this year, it is estimated that a shutdown of the semiconductor production lines could result in losses of about 1 trillion won per day. In fact, when the Pyeongtaek plant suffered a 28-minute power outage in 2018, the losses reached about 50 billion won. Converted to a daily figure, this would amount to roughly 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

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Industry insiders have expressed concern over the union’s decision to push ahead with a general strike that could result in astronomical losses. If the strike disrupts production and the company fails to deliver supplies on time, it could damage Samsung Electronics’ credibility and brand reputation in the global market, where supply chain resilience is valued above all else.

An industry official pointed out, “If the strike causes Samsung Electronics to miss delivery deadlines for clients, it could escalate into disputes over breach of contract and liability for damages, resulting in further economic losses. If the union claims that operating profit is their fair share, they must also be prepared to take responsibility for any losses caused by their actions for their argument to be convincing.”

Samsung Electronics has stated that, regarding the union’s strike plans, operation of safety-related facilities at semiconductor plants-directly tied to workplace safety-must be maintained regardless of any labor disputes. Because semiconductor production lines must operate 24 hours a day, any shutdown due to a strike would inevitably cause enormous losses not only for Samsung but also for the global IT industry as a whole.

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

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Recently, the company requested via its internal bulletin board that at least those staff involved in the maintenance of safety protection facilities and in preventing deterioration or spoilage of raw materials and products continue to work as usual. This applies to approximately 12,800 employees, which is about 5% of the total workforce. In fact, Article 42, Paragraph 2 of the Trade Union and Labor Relations Adjustment Act prohibits any act that suspends, abolishes, or interferes with the normal maintenance and operation of workplace safety facilities. Violation of this law is subject to criminal penalties.

A Samsung Electronics representative promised, “We will respond in accordance with the law and principles, while protecting the safety of employees and the local community and minimizing disruptions to clients, delivery deadlines, global supply chains, and 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

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Meanwhile, nearby, about 20 members of the “Korea Shareholder Activism Headquarters” held a counter-rally. Min Kyungkwon (47, startup operator), who organized the rally, expressed strong concerns in a statement and Q&A session, saying, “Amid unreasonable demands from employees, the 5 million Samsung Electronics shareholders are being thoroughly marginalized.”

After the rally, Chair Choi responded to reporters about shareholder criticism of the union’s demands for higher performance bonuses by stating, “We union members are also shareholders of Samsung Electronics. The abolition of the bonus cap has already been achieved by competitors, and TSMC allocates over 10% of its operating profit for bonuses-so our demand is not excessive.” He added, “In the past four months alone, more than 200 union members have moved to SK Hynix. This is by no means a normal structure. I want to have an open and honest 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

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