Members of the Samsung Group Cho-Gieop Labor Union hold a press conference declaring their official status as a majority union in front of Samsung Electronics’ Seocho headquarters in Seocho-gu, Seoul, on the 17th of last month. Yonhap News
Samsung Electronics (005930.KS) labor union recorded an 88% turnout in its vote on a tentative wage agreement just four days after balloting began.
According to the Samsung Electronics chapter of the Samsung Group Supra-Enterprise Union on the 25th, the turnout among union members for the tentative wage agreement reached 87.93% as of 4:30 p.m. that day. The figure rose slightly from 85% a day earlier. At this pace, turnout is expected to reach about 90% by the time the vote closes at 10 a.m. on the 27th.
The tentative agreement is reportedly drawing support mainly from members in the memory business division, while opposition is coming primarily from members in the non-memory and finished products (DX) divisions. The tentative agreement includes a provision to pay 10.5% of business performance as a special management performance bonus. Under this formula, the memory business division, which led earnings growth, would receive an average of 600 million won per person, while the non-memory division would receive 160 million won. The non-memory division is pushing back against the smaller compensation compared with memory, and the DX division is also resisting receiving less than the loss-making non-memory division.
While the Device Solutions (DS) division accounts for the majority of union members, the possibility of rejection remains depending on the extent of defections among non-memory members. “If it passes, we will improve the areas that need improvement and build a stronger organization to create a better union,” said Choi Seung-ho, chairman of the Supra-Enterprise Union. “If it is rejected, I will delegate the negotiations to the rest of the executive committee and hold a vote of confidence.”