Samsung's Largest Labor Union to Hold Confidence Vote on Chief

SEOUL, June 17 (Yonhap) -- Samsung Electronics Co.'s largest labor union said Wednesday it will hold a confidence vote on its chief union leader following backlash over a recently concluded wage agreement with management.

The vote on whether to reaffirm Chairman Choi Seung-ho will begin next Wednesday and run for one week, the union said. The confidence motion will pass if it receives support from more than half of participating union members.

Under the wage agreement reached in May, Samsung will provide a special semiconductor performance bonus equivalent to 10.5 percent of business performance earnings. The bonuses will be paid in company stock over a period of at least 10 years and will be tied to performance targets for the chip division.

However, dissatisfaction over the distribution of the performance-based bonuses has fueled an exodus of union members, as many workers argue that the deal primarily benefits employees in the semiconductor business.

The union, whose membership is concentrated among semiconductor employees, at one point surpassed 76,000 members during wage negotiations and secured majority union status. It has since lost that status amid declining membership.

As of 8 a.m. Wednesday, the union had 56,450 members.