Samsung Electronics DX division labor dispute

The Donghaeng Labor Union, representing Samsung Electronics’ Device Experience (DX) division, has initiated protests regarding compensation disparities between the DX division and the Device Solutions (DS) semiconductor division.

Initially, the union planned a large-scale rally near the company’s Seocho headquarters in Seoul. The union sought to nullify a May agreement that provided DX employees with 6 million won in company stock, demanding instead a package of 1,000 shares per employee. This demand led to legal debates concerning whether the planned industrial action would constitute business interference.

The dispute escalated as the union announced plans for long-term protests and one-person demonstrations near Chairman Lee Jae-yong’s residence in Yongsan, scheduled to begin with an inauguration ceremony on the 18th. In addition to the demand for 1,000 shares per employee, the union is calling for a common fund based on company-wide performance and uniform base-pay increase rates across all divisions. While the union blames management failures for the DX division’s profitability, critics have questioned the feasibility of their demands and the legitimacy of the protests following previous government mediation.

Amidst these tensions, Choi Seung-ho, chairman of the Samsung Electronics branch of the Samsung Group Super-Enterprise Labor Union, is facing allegations of favoritism regarding union procurement. It has been reported that the union contracted with a company owned by Choi’s father-in-law to supply items such as vests for protest activities. Choi acknowledged the relationship but denied any personal financial gain, stating the decision was based on a comparison of vendors and that the contract was approved by executive members of the joint struggle headquarters.