March 31, 2026 – A significant controversy has erupted at Samsung Electronics as a union spearheading strike efforts has issued warnings that members who opt not to participate in the strike could face unfavorable repercussions. Choi Seung-ho, the head of the Samsung Electronics branch within the Samsung Group Joint Union, announced on March 29 that the union is organizing a rally on April 23 and plans to initiate a full-scale strike in May. He stated that the union will make public the participation rates of each department and team in the strike, with the data derived from employee leave records and strike attendance.
Choi also wrote that for departments that decline to join the strike, the union will stop advocating for bonus adjustments and enhancements in working conditions on their behalf. During a prior YouTube live stream, Choi mentioned that employees who continue working during the strike will be recorded. If the company intends to transfer or dismiss such employees, it is obligated to consult with the union, and the union will prioritize facilitating the relevant processes. He also said that the union will set up a reporting mechanism during the strike and offer rewards to those who report employees collaborating with management.
The union’s hardline stance is aimed at preventing a repeat of the 2024 strike. Back then, around 32,000 members of the National Samsung Electronics Union went on strike for 25 days, but it failed to have a substantial impact on production.
These statements have triggered strong opposition within the company. Numerous employees have left comments under the union’s notice, questioning whether the union’s remarks are for mobilizing strike participation or implementing discriminatory treatment. An employee, presumably from the Device Solutions (DX) department, commented that the union should take into account all business departments rather than just focusing on the Semiconductor (DS) department. Some employees from wafer factories also expressed that it is unacceptable to advocate for unity on one hand and engage in departmental discrimination on the other. However, there are also employees who support the union leadership, claiming that the notice is merely to encourage full participation in the strike and not to deliberately create departmental rifts.
The underlying cause of this internal conflict lies in the differing interests of various business departments regarding the union’s demand for bonus system reform.
The central issue of the controversy is the removal of the cap on operating profit incentive bonuses. Currently, Samsung Electronics stipulates that the operating profit incentive bonus cannot exceed 50% of an employee’s annual salary. The union demands the complete abolition of this cap, while the company management is resistant to this proposal.
Samsung Electronics issued an internal announcement on Monday, stating that it has informed all employees about the progress of labor-management negotiations. The company has put forward a special bonus plan: if the Semiconductor (DS) department maintains its leading position in the South Korean industry and employees with performance ratings meeting specific criteria can receive bonuses on par with those of industry competitors.
The company also said that it will allocate 13% of its operating profit as a bonus pool, higher than the 10% previously requested by the union. For loss-making business lines such as the System Large-Scale Integrated Circuit department and the Wafer Foundry department, if their operating performance improves, the company proposes to raise the cap on their operating profit incentive bonuses from the current 50% to 75%, a 25 percentage point increase. Additionally, the plan includes a 6.2% salary increase, housing loan benefits of up to 500 million won, and a five-fold increase in fertility and family-related subsidies.
It is reported that the union still insists on structural reform demands, hoping to permanently scrap the bonus cap and refuses to accept the one-time special bonus plan. The union proposes to allocate 10% of the operating profit as the total bonus amount, with the distribution ratio calculated as 40% based on department performance and 60% based on business unit performance.
The management, however, refuted that the current incentive bonuses are calculated based on the overall department performance, not on an individual business unit basis. If the union’s distribution structure is adopted, the incentive bonus ratio for long-term loss-making business lines such as System Large-Scale Integrated Circuits and Wafer Foundries will drop sharply from the current 47% to 11%.
Moreover, the Device Solutions (DX) department, responsible for smartphones and home appliances, is constrained by its business nature, and its profit growth is hard to match that of the memory chip business. Therefore, employees from the DX department, System Large-Scale Integrated Circuit department, and wafer factories generally have a low willingness to participate in the strike.
