Samsung union demands 15% profit share as performance bonus amid record losses
Tensions are rising at Samsung Electronics as its union pushes for major changes to performance bonuses. The demand comes after the company’s DS division reported a record operating loss of 14.9 trillion won in 2023. Critics argue the union’s requests reflect unchecked greed rather than fair negotiation. The Samsung Electronics union has called for 15 percent of the company’s operating profit to be distributed as uncapped performance bonuses. Management, however, has resisted overhauling the bonus system, despite the union’s repeated demands in 2023 and 2024. Observers noted that the company missed a chance to address these issues last year.
The union’s position has faced strong backlash, with detractors labelling it a 'gold-spoon union’s money party' and a 'closed cartel of interests'. Meanwhile, former DS division head Kim Ki-nam received a severance package of 16.03 billion won, even as the division posted massive losses. Critics argue this highlights inconsistencies in how profits and losses are managed.
Elsewhere, Kim Yong-beom, the presidential chief of staff for policy, proposed a 'citizen dividend', suggesting excess corporate profits should be shared with all citizens. The Democratic Party and progressive groups have also pushed for stricter controls on export companies and a fairer distribution of profits. Samsung now faces pressure to redesign its performance pay system to ensure transparency and prevent annual disputes. A potential strike could reduce operating profit and may conflict with corporate management rights and market principles. The company must now balance union demands with financial stability. Failure to resolve the issue risks further criticism and operational disruptions.
Read also:
- American teenagers taking up farming roles previously filled by immigrants, a concept revisited from 1965's labor market shift.
- Weekly affairs in the German Federal Parliament (Bundestag)
- Landslide claims seven lives, injures six individuals while they work to restore a water channel in the northern region of Pakistan
- Escalating conflict in Sudan has prompted the United Nations to announce a critical gender crisis, highlighting the disproportionate impact of the ongoing violence on women and girls.
