Samsung SDS drops stock‑based bonus plan amid new union's collective bargaining push

Samsung SDS announced it will not implement a proposed stock‑based performance‑pay scheme after a company‑wide vote fell short of the required majority. While 71.9% of participants supported the plan, overall employee approval was only 40%, below the 50% threshold needed to adopt the change.

The vote outcome spurred the formation of the Samsung Group United Union – Samsung SDS Chapter, the firm's first labor union, which gathered more than 5,500 members on its second day, representing just over half of the company’s roughly 11,000 staff. The union immediately submitted a request for collective bargaining in accordance with legal procedures and called for a transparent compensation system, warning that the stock‑based scheme could affect severance‑pay calculations and expose workers to market‑price volatility.

Samsung SDS said it will now follow the required legal steps, including a public notice to verify any other bargaining representatives. The company's CEO apologized for the confusion and pledged to listen more closely to employee concerns as negotiations move forward.