[why&next] What the “N% Performance Bonus” Has Left in Our Society... Samsung Electronics DX Unions Launch Successive Rallies

SEUNU on July 14, Donghaeng Union on July 16

Rallies to be held consecutively at the Suwon campus

From joint altar installations to black-clad protests

The conflict between the Device Solutions (DS) division of Samsung Electronics, which is responsible for semiconductors, and the Device eXperience (DX) division, which oversees home appliances, TVs, and smartphones, over performance bonus disparities has escalated into collective action. This week, the second- and third-largest unions in the company, the National Samsung Electronics Union (NSEU) and the Samsung Electronics Union Dongaeng (Dongaeng Union), are holding rallies in succession, heightening tensions in labor relations at Samsung Electronics once again.

There are indications that this situation goes beyond a simple wage dispute. The so-called 'N% performance bonus,' which is linked to the business division's results, has led to compensation differences of around 100 times within the same company. While there is little disagreement with the principle of compensation based on performance, the outcome has led to a sense of deprivation among employees, exposing the aftereffects of a performance-based reward system on the organization. Since other major domestic companies are also expanding performance-based compensation, some are saying this conflict cannot be seen as an issue exclusive to Samsung Electronics.

According to industry sources on July 14, the NSEU is holding a rally in front of the main gate of the Suwon plant at 11 a.m. today, urging for measures to boost morale and improve compensation in the DX division. The rally is scheduled to continue until 7 p.m. that day.

The NSEU explained, "This rally is not intended to criticize any particular individual or organization, but to bring the voices from the field regarding the sense of relative deprivation and decline in morale currently felt by DX division members to management," adding, "We will call for the development of practical measures that can boost morale and improve compensation in ways employees can truly feel."

At the rally, the NSEU intends to install a joint memorial altar and encourage voluntary participation in floral tributes as a performance. In addition, there will be a historical exhibition space highlighting the DX division's growth and major achievements. The union also plans to collect members' opinions through the signing of a guestbook, which will later be reflected in discussions with management.

Two days later, on July 16, the Dongaeng Union, primarily composed of DX division employees, will take over. The Dongaeng Union will also hold a rally near the Suwon plant, under the slogan "Same Company, Same Rights."

The Dongaeng Union stated, "We are holding this rally to speak out against this year's unfair exclusion of DX division employees during wage negotiations," adding, "We aim to gather up to 2,000 to 3,000 participants." Previously, the Dongaeng Union has staged group actions, such as members wearing black to work and holding one-person protests, publicly expressing discontent with the exclusion of the DX division.

It is known that last month, the Dongaeng Union met with Tae Moon Roh, CEO of Samsung Electronics and head of the DX division, to raise the issue of compensation disparities between the DS and DX divisions, demanding an apology and concrete countermeasures from management. The union also reconfirmed its position that starting in 2027, performance bonuses should be funded at the company-wide level, rather than being tied to the performance of individual business divisions.

The background for both unions holding rallies in succession is the deepening polarization of compensation between divisions. In a provisional wage agreement reached this May, labor and management at Samsung Electronics agreed to set the DS division's performance bonus at a combined rate of around 12% of operating profit (1.5% from the existing excess profit-based bonus and an additional 10.5% as a special management bonus). As a result, DS division employees, including those in the memory business unit who achieved record results, will receive performance bonuses of up to 600 million won, while compensation for DX division employees, including company stock bonuses, is only around 6 million won, fueling ongoing controversy over fairness.

With both the NSEU and the Dongaeng Union—unified around the DX division—demanding that management take responsibility for failed compensation policies, the company now faces mounting pressure. As of the previous day, membership in the Dongaeng Union stood at 28,412, accounting for 55% of all DX division employees (51,717). The NSEU's membership has also surpassed 22,600. In contrast, the Samsung Electronics Branch of the Samsung Group Corporate Union (the largest union, mostly DS division employees) has continued to lose members.

Conflict between unions—so-called 'union-to-union conflict'—has also become a variable. The Corporate Union recently rejected a proposal from the Dongaeng Union to engage in joint collective bargaining for 2027 wage negotiations. By drawing a line and focusing on improving conditions for the DS division, competition between unions for leadership in future bargaining appears inevitable.

The signs of a potential exodus of DX division personnel are also a concern. Industry insiders report that on the very day SK hynix posted a recruitment announcement, rumors circulated in an online chat room used by Samsung Electronics employees that even mid-level managers were considering applying for entry-level positions at SK hynix. This is raising concerns that morale problems caused by the widening compensation gap could lead to an outflow of key personnel.

As the second- and third-largest unions opposing this year's wage agreement continue Scaling Up, the leadership of management—tasked with strengthening 'One Samsung' and organizational cohesion—is being put to the test once again. An industry official commented, "Since this year's wage negotiations have already been finalized on principle of performance-based pay, the actual impact or effectiveness of the rallies will be limited." However, he pointed out, "Nonetheless, if distrust of the compensation system becomes entrenched, it could weigh on the overall operation of the organization."

This content was produced with the assistance of AI translation services.