Sharp labor-management divide over bonus calculation method
Plan to secure right to strike if mediation fails
The joint bargaining group, which includes the supra-enterprise labor union Samsung Electronics Chapter, the first single majority union in Samsung Electronics' history, declared a breakdown in wage negotiations after failing to narrow differences with management.
The joint bargaining group, consisting of the supra-enterprise union, the National Samsung Electronics Labor Union, and the Samsung Electronics Labor Union Donghaeng, announced on the 19th that it is "officially declaring the breakdown of the 2026 wage negotiations and initiating an application for mediation with the National Labor Relations Commission."
The joint bargaining group plans to submit an application for labor dispute mediation on the 20th and intends to secure the right to strike in case the mediation outcome falls short of expectations. Woo Hakyoung, chief negotiator and representative of the joint bargaining group, explained the background of the declaration of breakdown, saying, "It has become difficult for wage negotiations to make any further meaningful progress."
The key issue in the negotiations was the method of calculating the Over-Profit Incentive (OPI). The joint bargaining group demanded that: ▲ the OPI generation period be fixed at three years ▲ performance exceeding the 50% OPI threshold be compensated at or above the level of competitors ▲ the profit-sharing ratio for excess performance be set at 50% for the division and 50% for the business unit.
In contrast, management proposed to announce at the beginning of the year the operating profit level at which OPI would be generated and to subdivide the 0-50% range into 10% intervals to provide information on expected operating profit. In particular, it is reported to have proposed that, if the DS (semiconductor) division achieves first place in Korea in both sales and operating profit this year, it will pay excess profit for every 1 trillion won in operating profit, but that the entire amount will be paid in stock.
Samsung Electronics has stated that it will continue consultations with the unions to facilitate smooth wage negotiations.
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