Samsung Union Intensifies Pay Row, Protests Executive Home
Samsung Electronics' Donghaeng union plans further protests, including near an executive's residence and a Times Square advertisement. It demands better compensation for its Device eXperience (DX) division members.
Union Escalates Campaign
Samsung Electronics' Donghaeng union is intensifying its compensation dispute. The union represents Device eXperience (DX) division workers. It claims widening pay gaps with the semiconductor-focused Device Solutions (DS) division. DX oversees smartphones, televisions, and home appliances. DS handles Samsung's chip business.
The Donghaeng union plans rallies near a Samsung executive's Yongsan home from September 18. Around 200 people will participate. Relay-style one-person protests are also scheduled. These actions follow earlier demonstrations at Samsung's Suwon campus and Seocho offices. The union also placed a 15-second video on a New York Times Square billboard. Its message states, "Great products begin with people."
Demands and Management Response
The union demands 1,000 Samsung Electronics shares for each DX employee. It also seeks a companywide performance-based compensation pool. Furthermore, the Donghaeng union wants identical base-pay increases across all divisions. It accuses management of unfairly blaming DX's weak performance on employees.
This leaves DX workers with significantly lower compensation than DS division staff. Samsung Electronics maintains compensation should reflect each division's performance. The company stated no basis exists for reopening negotiations. The 2026 wage agreement concluded in May through government mediation.
A tentative deal received 73.7 per cent approval from eligible voters on May 27. Donghaeng had withdrawn from joint bargaining before this vote. It argued the deal did not address DX employee concerns.
Widening Performance Gap
The dispute intensified as the performance gap between Samsung's DS and DX divisions widened. DX reported 48 trillion Korean won (US$35.7 billion) in second-quarter revenue. However, it posted an 800 billion won operating loss. This marked DX's first quarterly loss since its establishment.
The Mobile eXperience and Networks businesses, part of DX, reported a combined 700 billion won operating loss. Higher memory and component prices increased finished product costs. This affected profitability within the DX division.
This escalating dispute could strain Samsung Electronics' internal labour relations. Public protests, including the Times Square ad, raise brand visibility risks. For investors, continued internal friction might impact operational efficiency. It also highlights challenges managing compensation across diverse, independently performing divisions.
The company's stance on divisional performance-based pay remains firm. This could lead to prolonged negotiations or further union actions. The outcome will inform labour strategies for other large Korean conglomerates.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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