Samsung Split Widens: 2,500 Non-Chip Workers Quit As Strike Demands Favor Chip Division Ahead Of Major Walkout

Samsung Electronics’ largest labor organization in Korea is experiencing a serious internal split as non-chip workers begin a mass exodus over strike demands that benefit the semiconductor sector. More than 2,500 employees resigned in a 10-day period as the schism between the tech titan’s many divisions widened.

According to a report by The Korea Herald, withdrawal requests on the union’s website surged recently. Daily exits jumped from fewer than 100 per day last month to more than 1,000 this past Wednesday. Most of the departures come from Samsung’s Device Experience (DX) division, which oversees smartphones, televisions, and other consumer electronics. While DX employees account for about 15,000 (20%) of the union’s 74,750 members, roughly 15 per cent of that specific group exited in just over a week.

The union leadership is comprised largely of employees from the Device Solutions (DS) division, which handles the semiconductor business. This group accounts for about 80 per cent of the total membership and remains the central force behind the planned walkout. This imbalance in representation has fueled tension, as the union’s primary demands are tied strictly to the performance of the chip business.

As per the report, the union has demanded that Samsung pay DS employees performance bonuses equivalent to 15 per cent of the chip division’s operating profit and permanently remove the bonus cap.

If accepted, this proposal would translate into an average payout of around 600 million won, or approximately USD 408,000, per semiconductor employee. Despite this high figure, the union has made no separate demands for the DX workers.

This lack of advocacy comes at a difficult time for the consumer electronics division, which saw its operating profit fall 36 per cent year-on-year in the first quarter, partly due to the high cost of chips purchased from Samsung’s own semiconductor arm.

Frustration among the smartphone and TV division employees intensified as the union also sought similar compensation structures for other units like foundry and System LSI, regardless of their weaker earnings. Tensions grew further after the union recently attempted to recruit strike participants by offering 3 million won (approx. USD 2,043) to members who join strike-related activities for at least 15 days.

This incentive plan follows a January decision to raise union dues during strike periods from 10,000 won to 50,000 won. The union stated the increase was intended to build a fund to support members taking part in industrial action.

The growing internal rift raises questions about the union’s ability to represent the entire company. However, because DX employees make up only one-fifth of the total membership, the report expects the leadership to proceed with their plans.

The union has announced plans for an 18-day full-scale strike from May 21 to June 7, demanding the removal of the bonus cap and greater transparency in how bonuses are calculated. It has warned that the walkout could result in losses of up to 30 trillion won (approx. USD 20.4 billion).

(YEAR)

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