DX, Non-Memory Divisions Express Dissatisfaction Over Low Bonuses: 'Feel Like Moving to Memory Division'

The hard-fought negotiations between Samsung Electronics' labor and management have culminated in a tentative agreement on performance-based pay, a crucial step that has so far prevented a strike. However, the final outcome hinges on the upcoming union member vote, where differing opinions across various divisions could lead to a rejection of the deal. This situation underscores the deep divisions within the company's workforce regarding compensation and the perceived fairness of the company's reward system.

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There may be parts of this agreement that do not meet the expectations of our union members. We will consider the results of this vote as a report card from our union members to the super-union.

The proposed agreement highlights a stark contrast in expected bonuses between the company's major divisions. The lucrative memory semiconductor (DS) division stands to receive substantial payouts, potentially reaching up to 630 million won (pre-tax) based on an assumed operating profit. In stark contrast, employees in the consumer electronics and mobile (DX) division are slated to receive a mere 6 million won. This disparity is a major point of contention, fueling resentment and a sense of unfairness among DX employees, who feel their contributions are undervalued compared to their DS counterparts.

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We were told the performance pay calculation method would be transparent, but in the end, they brought in an ambiguous standard called 'performance criteria,' and we don't know what they did.

Adding to the internal friction, many DX division members express profound disappointment and a feeling of betrayal. They criticize the performance-based pay calculation method as opaque and poorly implemented, arguing that the company has failed to deliver on promises of transparency. The sentiment among some DX workers is that the union, by agreeing to this proposal, has inadvertently supported the company's strategy of dividing its workforce. This has already led to a significant exodus of members from the union, with around 4,000 DX employees having left. The situation is further complicated by remarks from the union leader suggesting a potential separation of the DX division from the union post-agreement, signaling a possible fragmentation of organized labor within Samsung.

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It's just empty. It's not about the amount, but the union agreeing to the company's divisive tactics.

The discontent is not limited to the DX division. Even within the non-memory semiconductor (foundry) sector, there is considerable opposition to the agreement, with some employees expressing a strong desire to transfer to the memory division for better compensation. While some memory division members may vote in favor out of respect for the union leadership, many are critical of clauses that tie special bonuses to extremely high operating profit targets, viewing them as unrealistic and potentially misleading. The union leadership faces immense pressure, both from its members and potentially from external factors, making the upcoming vote a precarious balancing act. The outcome remains uncertain, with a 50-50 chance of either approval or rejection.

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There are many opposing opinions on this agreement in the foundry sector. I feel like I want to move to the memory division.