Samsung union seeks court order to halt vote on controversial pay deal
A union representing Samsung Electronics' consumer electronics workers has asked a South Korean court to block a vote on a newly negotiated wage agreement, arguing that the deal unfairly favors employees in the company's highly profitable semiconductor business.
The legal challenge was filed by the Samsung Electronics Co Union (SECU), which represents around 13,000 workers, mainly from the smartphone, television and home appliance divisions. The union said it was excluded from the voting process after leaving the negotiating team amid disagreements over the proposed agreement, News.az reports, citing Reuters.
The pay deal, reached last week through government-mediated negotiations, helped avert an 18-day strike involving approximately 48,000 workers. It includes substantial bonuses for employees in Samsung's memory chip division, which has benefited significantly from booming demand for artificial intelligence technologies.
Voting on the agreement began on Friday and is scheduled to conclude on Wednesday. Approval requires a majority of eligible union members to vote in favor and sufficient participation to meet quorum requirements.
Negotiations were led by the Samsung Electronics Labor Union (SELU), which said more than 90% of its eligible members had already cast ballots. The union did not disclose voting results.
Another labor organization, the National Samsung Electronics Union (NSEU), has also criticized the agreement and announced plans to boycott the vote.
The dispute has highlighted growing tensions within Samsung over how profits generated by the artificial intelligence boom should be distributed among employees. While workers in memory chip operations are expected to receive exceptionally large bonuses, employees in other business divisions, including smartphones and home appliances, are set to receive significantly smaller payouts.
The controversy has also attracted opposition from a group of shareholders, who have threatened legal action if the agreement is approved, claiming some provisions require shareholder approval.
Samsung shares rose 2.7% in morning trading. Since the deal was announced last week, the stock has gained nearly 9%, although it has lagged behind the stronger performance of rival chipmaker SK Hynix.
By Faig Mahmudov
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