Samsung Electronics Non-Chip Union Seeks Injunction Against Wage Vote

A pivotal vote on Samsung Electronics’ provisional 2026 wage agreement has encountered an eleventh-hour legal challenge. A labor union representing the company’s non-chip division employees has petitioned a court to suspend the ballot, alleging unfair exclusion of its members from the crucial vote.

The Samsung Electronics Donghaeng Labor Union officially announced on Tuesday that it has sought an injunction from the Suwon District Court. This legal action aims to immediately halt the ongoing ballot for the tentative wage agreement, which was previously negotiated between Samsung Electronics and the designated bargaining representative union.

Around 10 a.m. Tuesday, 51,835 of 57,305 eligible members of the Samsung Electronics Labor Union, the company’s largest union and a member of the joint bargaining group, had cast ballots, putting turnout at 90.45 percent. The result is expected to be announced at 10 a.m. Wednesday.

The largest union accounts for 57,305 of 65,492 eligible voters in the ballot. The National Samsung Electronics Union, the No. 2 union, accounts for about 12.5 percent.

Central to the dispute is the contention over whether Donghaeng Labor Union members were rightfully denied their voting opportunity. Donghaeng asserts that the largest union deliberately excluded its members from the ballot, fearing significant opposition, particularly from employees within Samsung’s non-chip business sectors, notably the Device eXperience (DX) division, responsible for smartphones, televisions, and home appliances.

Prior to the commencement of voting, Choi Seung-ho, who leads the largest union, sent emails to Donghaeng on May 20th and 21st. He requested that Donghaeng conduct its own separate vote on the proposed wage agreement and provide a complete membership list by the designated deadline of 2 p.m. on May 21st.

“The Samsung Electronics Labor Union is committed to respecting the voting rights of all affiliated unions,” Choi stated in his correspondence.

Following this, Donghaeng’s membership rapidly expanded, surging from approximately 2,600 to around 13,000 within a single day. This dramatic increase, according to the union, unequivocally underscored the escalating discontent among DX employees regarding the specifics of the provisional agreement.

However, on the very morning of the vote, Choi announced that the agreement had, in fact, been officially signed on May 20th. This occurred after Donghaeng had reportedly relinquished its status within the joint bargaining group. Consequently, Choi clarified that voting rights would be strictly confined to members of the unions that maintained their position within the group, based on the membership lists submitted by the established deadline.

Donghaeng had initially engaged in the wage negotiations as an integral part of the joint bargaining group. However, the union later withdrew, citing concerns that the perspectives and demands of DX employees were not being adequately represented or addressed.

Park Jae-yong, the leader of Donghaeng, publicly accused the representative union of systematically denying both equal treatment and fundamental voting rights to minority unions.

“This hastily concluded agreement suggests that both the company and the representative union believe any decision made by the bargaining representative should be unquestioningly accepted, irrespective of its flaws,” Park asserted. He added, “Our objective is not solely about performance-linked rewards. What we demand is equitable treatment and fair representation for all within the same corporate structure.”

In a Sunday announcement, Donghaeng confirmed it has retained law firm Daejeong to initiate further comprehensive legal actions. These include a formal request to suspend the immediate effect of the vote, the filing of a lawsuit to nullify the entire ballot, and a complaint alleging a serious breach of the duty of fair representation.

The core of the provisional agreement revolves around two key changes: the introduction of a new special management performance bonus specifically for Samsung’s highly profitable chip division, and a significant alteration to the funding methodology for the company’s overarching performance incentive (OPI), which can account for up to 50 percent of an employee’s annual salary. Under the terms of this deal, the OPI pool will now be calculated based on 10 percent of operating profit, a departure from the previous economic value added (EVA) formula.

Industry analysts widely anticipate the deal’s approval, barring any unforeseen developments. This expectation stems primarily from the fact that an estimated 80 to 90 percent of the Samsung Electronics Labor Union’s voting members are employees within the Device Solutions (DS) division, which directly manages Samsung’s highly lucrative chip business.

While some DS employees, particularly those engaged in the System LSI and foundry operations, have voiced considerable frustration regarding the proposed bonus amounts within the tentative agreement, a prevailing sentiment of fatigue from the protracted wage negotiations seems to be steering many employees towards favoring an expedited settlement.

Fundamentally, this escalating dispute mirrors the deep-seated frustration among DX employees concerning the continuously widening compensation disparity when compared to their counterparts in Samsung’s highly lucrative chip business.

Under the terms of the provisional agreement, employees within the DS division stand to receive substantial performance-based compensation, potentially ranging from approximately 210 million won to 600 million won (equivalent to $139,100-$398,200 USD) before tax, assuming an average annual salary of 100 million won. In stark contrast, DX employees are projected to receive compensation in the form of company shares valued at approximately 6 million won.

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