Samsung mobile employees protest for bonuses
Employees of Samsung's mobile division are making new demands through the union due to the bonus difference between them and the chip division.
Quick Look
- Employees of Samsung's mobile division are organizing protest rallies, stating that they are excluded from the high bonuses given to the chip division.
- Donghaeng Union is putting pressure on the management with demands such as cash compensation and a joint bargaining system.
AI-generated summary
Why It Matters
While Samsung's chip division is receiving high bonuses due to record profits, its mobile division is struggling due to cost increases.
Things are getting tense at the Device eXperience division, which develops Galaxy devices. Samsung mobile employees say they are unhappy with the company's salary and bonus plan. That's why they're holding a rally for a better offer.
Record Jackpot for the Chip Department
Samsung Electronics announced record profits last year. The main reason for this was the increase in the price of memory chips. Therefore, employees in the semiconductor department received an average bonus of over 339 thousand dollars.
However, the picture is very different on the mobile side. The division is heading towards reporting an annual loss for the first time. Moreover, the reason for the loss is ironic: High chip prices, which increased Samsung's profits, also increased the cost of the mobile division. On the other hand, this situation made the difference between the two departments even more visible.
What Do Samsung Mobile Employees Want?
Donghaeng Union, which counts mobile department employees among its members, argues that they are excluded from the special performance bonus. In addition, the union expresses the following three demands:
Apology from Samsung for exclusion
Cash compensation plan for members
Joint bargaining system for 2027
However, these demands may not be easily accepted. Because the union voluntarily withdrew from the bargaining process, thinking that the negotiations were too focused on the chip section. Therefore, sitting at the table again may not be easy for both parties.
Previous Agreement and Next Step
An agreement was made between the union and management at the beginning of this year. Accordingly, each mobile department employee would be given treasury shares worth 6 million won, or approximately $4,400. However, the union thinks that this regulation does not close the bonus gap.
The union is currently holding rallies outside the workplace. It is unclear whether they will take more drastic steps such as a strike. Samsung has not yet made a statement on the issue. Therefore, all eyes turned to the company's response.
Open Questions
- Will Samsung management respond to the union's demands?
- Will the union decide to strike?
