Samsung union approves confidence vote for chairman after wage deal backlash

Samsung Electronics' largest labor union said Tuesday that its members approved a confidence vote in Chairman Choi Seung-ho, reaffirming support for the union leader despite criticism over a recently concluded wage agreement with management.

The motion passed with 87.5 percent support among participating members after recording a 70.8 percent voter turnout, the union said. Under union rules, the motion required approval from more than half of the members who voted.

In a statement, Choi said the union would pursue separate bargaining for Samsung's device solution (DS) division, which oversees the company's lucrative semiconductor business, by utilizing Korea's labor law provisions that allow bargaining-unit separation.

"Even if the separation is not approved, we will seek better results for the DS division through independent negotiations by the industrial union," Choi said.

Under the wage agreement reached in May, Samsung will provide a special semiconductor performance bonus equivalent to 10.5 percent of business performance earnings. The bonuses will be paid in company stock over a period of at least 10 years and will be tied to performance targets for the chip division.

However, dissatisfaction over the distribution of the performance-based bonuses has fueled an exodus of union members, as many workers argue that the deal primarily benefits employees in the semiconductor business.

The union, whose membership is concentrated among semiconductor employees, at one point surpassed 76,000 members during wage negotiations and secured majority union status. It has since lost that status amid declining membership.

Yonhap