The Samsung Electronics Co Union (SECU) has requested a South Korean court to halt a voting process concerning a pay deal that predominantly benefits employees in the company's memory chip division. This legal action comes amid a backdrop of discontent among consumer electronics workers.
Discontent Among Workers Over Pay Deal
We had no right to join the vote, which prompted our legal action.
Samsung Electronics Co Union (SECU)
- The agreement includes large bonuses for memory chip employees.
- SECU has about 13,000 members mainly from smartphone, TV, and home appliance divisions.
Voting for the agreement began on Friday and is set to close on Wednesday morning. The SECU, representing about 13,000 workers, withdrew from the negotiations prior to the deal's finalization due to disagreements.
Negotiations were conducted by the Samsung Electronics Labor Union (SELU). They announced that over 90% of their 57,290 eligible members participated in the vote, although specific voting outcomes remain undisclosed. For the deal to pass, it requires a simple majority of those who voted.
The National Samsung Electronics Union (NSEU), representing around 20,000 members, expressed its dissatisfaction with the deal and plans to boycott the vote.
Samsung is a major player in the South Korean economy, accounting for roughly 25% of the country's exports. The ongoing dispute over the pay deal sheds light on the complexities of profit distribution in the context of the booming AI industry.
Workers in the memory chip division are slated to receive bonuses that could reach $416,000 this year, while those in other divisions, such as smartphones, will see significantly lower amounts.
Additionally, a group of shareholders has threatened legal action if the agreement is ratified, claiming parts of the deal require shareholder approval.
Despite the controversy, Samsung's shares rose 2.7% in morning trading, showing a nearly 9% increase since the agreement was initially announced, although this lagged behind a 19% rise for competitor SK Hynix.