Samsung union splits as non-chip workers exit over strike demands

A growing number of Samsung Electronics union members outside the company's semiconductor business are leaving its majority labor group, as a planned strike over chip-focused bonus demands exposes deepening internal divisions.

According to industry sources Monday, withdrawal requests have surged in recent days on the union’s website. More than 2,500 members are believed to have left in the 10 days through Saturday, with daily exits jumping from fewer than 100 earlier last month to more than 1,000 on Wednesday.

Most departures are understood to come from Samsung’s device experience (DX) division, which oversees smartphones, TVs and other consumer electronics. DX employees account for about 20 percent — roughly 15,000 — of the union’s 74,750 members, suggesting that around 15 percent of DX members have exited in just over a week.

The union is led largely by employees from the Device Solutions (DS) division, Samsung’s semiconductor business, which accounts for about 80 percent of membership and sits at the center of the planned walkout.

The union has demanded that Samsung pay DS employees performance bonuses equivalent to 15 percent of the chip division’s operating profit and permanently remove the bonus cap.

If accepted, the proposal would translate into an average payout of around 600 million won ($408,000) per DS employee. The union has made no separate demands for DX workers, even as the consumer electronics division faces deteriorating profitability.

DX’s operating profit fell 36 percent on-year in the first quarter, partly weighed down by higher semiconductor costs from Samsung’s own chip business. Some analysts have raised the possibility that the division could post a full-year loss.

Frustration among DX employees has intensified as the union is also seeking similar compensation structures for DS units, such as foundry and System LSI, despite their weaker earnings or losses.

Tensions have been further fueled by the union’s recent effort to recruit strike participants, offering 3 million won to members who join strike-related activities for at least 15 days.

The move has drawn scrutiny to a January decision to raise union dues during strike periods from 10,000 won to 50,000 won, which the union said was intended to build a fund to support members taking part in industrial action.

The growing rift has raised questions about the union’s representativeness and the broader case for the strike. Still, with DX employees accounting for only about one-fifth of the membership, industry observers say the leadership is likely to press ahead.

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.