While Samsung Electronics proposed a 600% bonus to its memory semiconductor division, it offered a maximum of 100% bonus to its non-memory semiconductor division, Reuters reported on the 16th.
According to the minutes of the wage negotiation meeting obtained by Reuters, Samsung Electronics offered 607% of its annual salary to employees of its memory division in the device solutions (DS) sector in March.
On the other hand, 50-100% of incentives were set for Foundry and System LSI, which are deficit units in DS.
The DS division in charge of Samsung Electronics' semiconductor business is largely divided into a memory division focusing on data storage devices and a system LSI and Foundry division covering system semiconductors such as chip design and consignment production.
Of these, the memory division has made huge profits from the recent artificial intelligence (AI) boom, but the system semiconductor division has suffered huge losses.
The company's representative negotiation committee, Vice President Kim Hyung-ro, said in the minutes, "The system semiconductor business recorded trillions of won in losses, and frankly, if it wasn't for our company, they probably would have gone bankrupt or closed down," adding, "How can we justify the payment of performance benefits?"
However, the union reportedly protested, saying that such a pay gap would shake the company's vision of being "No. 1 in 2030 system semiconductors" and encourage employee departures.
In the minutes of the meeting, union leader Kim Seungho Choi said, "If the memory division receives 500 million won in incentives, but the foundry division receives 80 million won, will those employees be motivated to continue working?"
Currently, Samsung Electronics is continuing labor-management dialogue amid the crisis of a general strike.
JPMorgan estimated that if the strike materializes, it could have a loss impact of between 21 trillion and 31 trillion won ($14.08 billion and $20.79 billion) on Samsung's operating profit.
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There are contradictory claims emerging that bonuses should be distributed equally to everyone.
On top of that, we were originally told the key issue wasn’t “equal distribution,” but rather “more pay.” So which is actually true?
We can’t judge everything based on fragmented news reports, but it’s hard to take seriously those who make unrealistic demands like asking for 15% of operating profit.
Looking at the current situation, labor unions as interest groups no longer appear to represent the ideals of a democratic society.
Instead, they increasingly resemble just another entrenched vested interest.
