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๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Economy & Trade

Samsung Union's Bonus Fight Sparks Criticism Over 'Missing Social Solidarity'

From Hankyoreh · (35m ago) Korean Critical tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • Samsung Electronics' union is facing criticism from within the labor movement for focusing solely on its own members' demands for hundreds of millions in performance bonuses.
  • Critics argue the union neglects to share profits with less-privileged workers, such as those in partner companies or non-regular positions, exacerbating inequality.
  • The union, a relatively new entity without a parent organization, is struggling with internal coordination and lacks experience in considering broader social responsibilities.

The recent push by the Samsung Electronics union for substantial performance bonuses, reportedly amounting to hundreds of millions, has sparked considerable debate not just between labor and management, but also within the broader Korean labor movement. While the union's demand for a share of the company's 'super profits' from its semiconductor business is understandable, the apparent disregard for the plight of workers in smaller, less-affluent partner companies and non-regular positions raises serious questions about social solidarity.

In labor relations, for a union to gain an advantage over an employer, it cannot think only of its own interests. It must have legitimacy based on national consensus to gain long-term benefits. Samsung Electronics' union must also consider whether this is the right direction.

โ€” Union official from the Korean Confederation of Trade Unions (KCTU)A KCTU official points out the need for broader social consensus and legitimacy in labor negotiations, criticizing Samsung's narrow focus.

This situation highlights a growing concern in South Korea: the widening gap between regular and non-regular workers, and between large corporations and their smaller suppliers. The Samsung union's singular focus on its own members' gains, while ignoring these disparities, risks alienating public support and undermining the very principles of labor activism. As a publication deeply rooted in understanding the complexities of Korean society and its labor dynamics, Hankyoreh must point out that a union's strength, in the long run, is tied to its ability to build national consensus and act with a sense of broader social responsibility.

Large corporate unions cannot avoid criticism from civil society if they only think of themselves.

โ€” Hyundai Motor Union officialAn official from Hyundai Motor Union emphasizes the importance of considering broader societal impacts, contrasting with Samsung's approach.

Unlike some established unions, such as the Hyundai Motor Union, which has a long-standing principle of including contract workers and even employees of partner firms in profit-sharing discussions, the Samsung union is a newer entity. Formed in early 2024, it lacks the institutional experience and established framework for engaging in such complex negotiations. This internal immaturity, coupled with the rapid surge in membership fueled by high bonuses at competitors like SK Hynix, means the union is still grappling with its identity and its role beyond immediate member benefits. The internal complexities of Samsung's various business divisions further complicate efforts to achieve unified demands, let alone address external social concerns.

The main body of the Samsung union is composed of individuals who are resistant to activities of higher organizations. Membership rapidly increased, not because of union activities, but triggered by the high performance bonuses at SK Hynix.

โ€” Korean Federation of Trade Unions (KFTU) officialA KFTU official explains the rapid growth and composition of the Samsung union, highlighting its lack of experience and potential lack of commitment to broader labor principles.

The current structure, lacking a parent organization or even a council of delegates, contributes to this internal disarray. The union's representative acknowledges the difficulty of addressing 'external' issues like social solidarity when internal consensus is lacking. This suggests a critical need for the union to first consolidate its internal structure and processes before it can effectively engage in broader societal dialogues. The absence of a platform for discussing issues beyond immediate wages and working conditions, such as profit-sharing with the semiconductor industry or partner firms, is a significant limitation. As experts suggest, a supra-corporate negotiation structure might be necessary to truly address the equitable distribution of wealth among diverse stakeholders.

There are too many business divisions within Samsung Electronics (semiconductors, home appliances, mobile, etc.), making interests complex. We haven't even achieved unity within these divisions. It's difficult to take on external aspects like social solidarity.

โ€” Samsung Electronics Union officialA union official admits to internal divisions and difficulties in addressing broader social issues due to complex interests within the company.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.