Samsung Electronics Union Demands Performance Bonus of 3.25 Million RMB per Employee; Korean Media: The World's Only "Semiconductor Union" Exists Only in Samsung and SK Hynix

The Samsung Electronics Union announced that it will hold a rally in front of Chairman Lee Jae-yong's residence on the first day of its scheduled general strike—next month's 21st. It also stated plans to visit five major factories located in Giheung, Hwaseong, Pyeongtaek, and other sites. If the company does not allocate 15%–45 trillion KRW (approximately 20.88 billion RMB) from this year’s projected operating profit of 300 trillion KRW (about 139.2 billion RMB), the union will threaten to use South Korea’s economic lifeline—semiconductors—as leverage. This would equate to nearly 700 million KRW (about 3.25 million RMB) per employee. SK Hynix has reportedly also pledged to pay a similar amount.

Recently, during a large-scale meeting to demonstrate their resolve for struggle, the Samsung Electronics Union reported that production output at memory plants operating night shifts dropped by more than 18% compared to the previous day. Meanwhile, output from contract manufacturing (outsourced production) lines—critical for the company’s future business—declined by 58%. Using these figures as evidence, the union claims that a 18-day general strike could result in total production losses amounting to 30 trillion KRW (about 139.2 billion RMB), thereby exerting pressure. There are increasing reports that overseas companies are asking whether semiconductor supply issues may arise. Under the backdrop of global economic competition, Samsung Electronics’ “union risk” is gradually becoming a reality.

Among the world’s leading semiconductor firms, only two companies in South Korea—Samsung Electronics and SK Hynix—currently have labor unions. In contrast, Taiwan’s TSMC, the world’s largest wafer foundry; NVIDIA, the dominant player in AI semiconductor design; and Intel, a fully integrated semiconductor manufacturer covering design to fabrication—do not have labor unions in the same form as those found in South Korean firms. Even Micron, a key memory competitor based in the United States, has only a “construction workers’ union” at its facilities, effectively meaning no formal union exists.

It’s not just semiconductor companies—most major tech firms (tech giants) generally operate without unions. Tesla has no union. Google has a union, but it remains limited to social activism levels. Amazon has unions only in select logistics warehouses, while Apple has them only in certain retail stores. Microsoft-owned companies do have unions occasionally, but there are almost no conflict cases. In the realm of large tech corporations, it is extremely rare to find precedents where employees demand equal distribution of corporate profits regardless of individual performance, as seen in Samsung Electronics or SK Hynix.

TSMC’s performance bonuses are not determined through labor-management negotiations but are instead stipulated in its articles of incorporation. These regulations set an upper limit on employee profit-sharing, preventing excessive bonus payouts from the outset. NVIDIA links employee performance directly to company value through high-proportion stock-based incentives, while Intel has restructured its performance reward system into a stricter, individual-achievement-focused model.

Sharing corporate gains with employees is natural and reasonable. However, in practice, among major technology enterprises, only Samsung Electronics and SK Hynix currently face the “union risk.” If excessive demands undermine corporate competitiveness, the consequences will not only harm national economies but also hurt union members themselves.

Source: Chosun Ilbo

Original article: toutiao.com/article/1863590877681737/

Disclaimer: The views expressed in this article are solely those of the author.