Samsung DX Unit Union Demands Compensation Despite Court Rejection

The Samsung Electronics Labor Union Donghaeng (Donghaeng Union), representing staff at the Samsung Electronics Device eXperience (DX) Unit, staged a large protest at their Suwon facility, pushing for compensation for DX employees and a joint negotiation system. This was the fourth off-site rally amid finalized wage discussions this year, sparking criticism from some business figures about the tactics employed.

Following the court's decision on November 5, the Donghaeng Union staged a "11.5 Suwon United Samsung" general assembly at the main gate of Samsung Electronics' Suwon plant in Yeongtong-gu, Gyeonggi Province. There, they blamed management for the DX Unit's ongoing financial losses. While the DX Unit saw an 8% sales increase to 52.1 trillion won in Q3, it posted an 800 billion won loss, marking two quarters of deficits.

The union argued management must justify the sales-focused strategy that may have hurt profitability, and that DX workers were left out of the special performance bonus system for the Device Solutions unit. The union demanded three things: an apology for their exclusion, a cash compensation plan for DX staff, and a joint negotiation agreement by 2027.

While the union participated in this year's wage negotiations, they withdrew from the delegation on May 4 in protest of the DS-unit centric approach. They then held a vote on May 27 to approve the final agreement, which included giving DX Unit employees 6 million won in treasury stock per person. However, the Donghaeng Union challenged its implementation in court, claiming they were unfairly excluded from the vote.

The court dismissed their claim in June, saying they had shown they were no longer part of the bargaining delegation.

Some business analysts suggest that challenging a finalized wage agreement late in the game goes against good faith in labor-management relations. There's also debate over whether off-site rallies breaking the "peace obligation" of collective bargaining agreements constitute de facto industrial action. But the controversy likely remains open, with employee reactions suggesting off-site protests may harm Samsung Electronics' public image amid internal struggles.