A union representing Samsung Electronics' consumer electronics workers has filed a request with a South Korean court to prevent a vote on a recent pay deal that primarily benefits employees in the company's chip divisions.
The agreement, facilitated by the government last week, successfully averted an 18-day strike involving 48,000 workers and includes significant bonuses for those in Samsung's memory chip division, which has experienced substantial profit growth.
Voting commenced on Friday and is expected to conclude on Wednesday morning, with a majority of unionized workers anticipated to approve the deal.
The Samsung Electronics Co Union (SECU), comprising around 13,000 members mainly from the smartphone, TV, and home appliance sectors, stated that it took legal action after being excluded from the voting process. Disagreements led the SECU to withdraw from the negotiation team prior to the agreement's finalization.
Internal Discontent
Negotiations were primarily led by the Samsung Electronics Labor Union (SELU), which reported that over 90% of its eligible members participated in the voting, though the results remain undisclosed. For the deal to pass, a majority of eligible union members must participate, with a majority of those voting in favor. If it fails, negotiations will restart.
Another union, the National Samsung Electronics Union (NSEU), which includes about 20,000 members, has expressed dissatisfaction with the agreement and is voting against it. Some chip division foundry workers have also voiced frustration, hoping for a miracle outcome against the deal.
Impact of AI Profits
This situation underscores significant divisions within Samsung regarding the distribution of profits generated from the AI sector. Workers in the memory chip division are set to receive bonuses totaling around $416,000 this year, while those in other divisions will receive much smaller amounts.
Additionally, a group of individual shareholders has indicated plans to pursue legal action if the deal is ratified, arguing that certain aspects of the agreement require shareholder approval.
Samsung's stock saw a 2.2% increase on Tuesday, reflecting an 8% rise since the deal was initially proposed, although this growth lags behind the 18% surge of competitor SK Hynix.
