Samsung Electronics strike raises concerns over deepening labor polarization

Concerns are rising within the labor sector that a planned strike by Samsung Electronics’ unions, now six days away, could deepen Korea's labor market polarization, as its demands mark a sharp break from conventional labor-management negotiations. The Samsung Electronics union coalition is set to begin a general strike on May 21, as tensions escalate over efforts to institutionalize the company’s bonus system. The union is calling for a legally binding guarantee to allocate 15 percent of operating profit to performance-based bonuses, along with the removal of the current cap on payouts — demands that management has rejected. However, the unions’ focus on performance-based bonuses marks a sharp break from past labor negotiations, where such incentives have rarely been a core bargaining issue. “Disputes over the allocation of performance bonuses are uncommon in established labor-management practices,” said Choi Young-ki, a professor of business administration at Hallym University. He said that the scale of the proposed profit-sharing is also unusual, noting that wage negotiation

Original source: Korea Times