Performance-Based Bonuses and Welfare Improvements Expected to Face Setbacks
The entire executive board of the National Samsung Electronics Labor Union (Jeonsamno), the largest labor union at Samsung Electronics, has resigned with about nine months remaining in their term.
According to industry sources on June 8, Son Woomok, the third-term chairman of Jeonsamno, posted a "Third-Term Executive Resignation Statement" on the union's website on June 4, announcing, "All executives have decided to end their terms early and resign as of today."
He added, "In light of the overlap between next year's wage negotiations and the fourth-term chairman election schedule, we have decided to step down responsibly to allow the new executive board sufficient time to prepare."
The term of the third-term executives was originally set to run until March next year, meaning they have abruptly resigned with about nine months remaining.
The main reason for the resignation is cited as internal conflict stemming from suspicions of a behind-the-scenes agreement between management and the executive board regarding the "2025 Wage and Collective Agreement." Previously, in March, labor and management concluded the 2025 Wage and Collective Agreement, which included an average wage increase rate of 5.1% (a base increase of 3.0% and a performance-based increase of 2.1%).
However, after the agreement was signed, it was revealed that the executive board had reached a separate deal with management to set a higher performance-based increase rate for the standing executive members. This led to internal backlash, including union members leaving the union.
Although the executive board explained that this was "to recruit new executives and strengthen the union," the number of union members plummeted from around 36,000 in March to 30,600 as of May 30.
The election to select the fourth-term executives is scheduled for September this year. With more than three months remaining until the new executive board is inaugurated, Jeonsamno will transition to an emergency response committee system and focus on stabilizing the union.
Jang Miseon, head of the Jeonsamno Emergency Response Committee, stated, "The previous executive board took full responsibility for the significant breakdown in trust and communication within the union and decided to step down voluntarily," adding, "As the head of the emergency response committee, I will serve as a bridge to prepare for a new beginning."
However, due to the executive board vacancy and resulting instability within the union, there is a possibility that the labor and management may face difficulties in producing the improved performance-based pay and welfare plans, which they had planned to finalize through a task force (TF) by the end of this month. Originally, labor and management had agreed to prepare the improvement plans by June.
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