Samsung Union to Hold Unusually Long Six-Day Vote on Tentative Bonus Deal

A tentative performance-bonus agreement reached by Samsung Electronics Co. and its labor union will be put to a membership vote from May 22 through May 27. Labor and management plan an intensive internal push to heal a prolonged dispute.

Opposition remains a risk, particularly in non-memory businesses such as foundry operations, where some employees argue the deal should be rejected because they were treated unfairly.

Samsung Electronics’ union will hold a yes-or-no vote on the tentative agreement from 9 a.m. on May 22 to 10 a.m. on May 27, a six-day period. That is longer than is typical for union balloting. The extended timetable reflects Samsung’s large workforce and the need for more time to win over employees after bruising negotiations.

Choi Seung-ho, head of the Samsung Electronics chapter of the Korean Metal Workers' Union, wrote on May 21 that he had received both support and complaints from employees in LSI, foundry, shared organizations and memory. “I’m sorry I can’t satisfy everyone,” he said. Choi added that he does not want to give up on the union and wants to deliver a better result together with members.

Jun Young-hyun, vice chairman of Samsung Electronics’ Device Solutions division, also sent employees a message urging them to put the period of conflict behind them and unite. The comments underscore efforts by both sides to shore up internal cohesion before the vote.

If approved, the agreement will take legal effect as a collective bargaining agreement once representatives of the company and the union sign it. Because the union represents a majority of Samsung Electronics workers, the agreement would also apply to members of other unions and to non-union employees under South Korean labor law.

Resistance to the deal is also becoming more visible inside the company. Employees in the Device eXperience division, who would receive a performance bonus of $4,340 under the agreement, are particularly upset. Among some workers, there are open calls to take part in the vote and defeat the proposal.

Employees in loss-making non-memory businesses, including foundry operations, have also voiced complaints. Under the tentative agreement, those businesses would receive performance bonuses at about 60% of the common payout rate starting next year, even if the overall Device Solutions division posts strong results. Still, rejection is not viewed as likely because non-memory divisions employ relatively few workers.

Kwak Yong-hee, Hankyung.com reporter, kyh@hankyung.com

Won Jong-hwan, Hankyung.com reporter, won0403@hankyung.com