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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The labor union at Samsung Electronics has called for increased performance-based compensation, citing strong earnings in the company’s Device Solutions (DS) division.
On April 7, the Samsung Electronics branch of the National Electronics Workers’ Union issued a statement urging the company to abolish bonus caps and introduce a more transparent and performance-linked compensation system.
The union pointed to Samsung Electronics’ preliminary first-quarter results, which showed record-high consolidated revenue of KRW 133 trillion and operating profit of KRW 57.2 trillion. It argued that the DS division alone is estimated to have generated approximately KRW 55 trillion in operating profit during the period.
“The company should recognize that these results were achieved through the dedication of its employees,” the union said, adding that current compensation frameworks do not adequately reflect actual performance.
The union also criticized management’s earlier compensation proposal, which was based on an annual operating profit assumption of KRW 200 trillion, claiming that current projections exceed KRW 270 trillion.
It demanded that bonuses be aligned with actual performance and future growth expectations, rather than outdated benchmarks.
The union further announced plans to hold a large-scale rally on April 23, stating it will continue its efforts until bonus transparency, removal of caps, and institutional reforms are achieved.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
