Input 2021.02.08 15:16 | Revision 2021.02.08 15:55
There is also a prospect that negotiations will not be easy because the circumstances of the affiliates are all different
On the 8th, the Samsung Group’s union (Metals Samsung Alliance) belonging to the National Federation of Metals Unions (Metals Labor Union) under the Korean Federation of Trade Unions (Korea Federation of Trade Unions) held a press conference in the conference room of the Korean Federation of Trade Unions in Yeouido, Seoul. The metal-Samsung Solidarity joint request was announced, including system improvement.
Samsung Display Labor Union co-chair Lee Chang-wan said, “Samsung workers are outraged at the management that operates in a stupid way about wages without knowing a clear basis.”
Chairman Lee said, “Samsung Group explains that the calculation method of incentive pay is determined after subtracting corporate tax from operating profit before tax, but the detailed calculation formula is confidential and cannot be disclosed.” “Where does is come from?” he insisted on transparent disclosure of the method of calculating the incentive pay.
The’performance pay controversy’ experienced by the labor and management of SK Hynix recently spread to the Samsung Metallurgical Solidarity. Earlier in SK Hynix, there was a voice calling for’transparent disclosure of the performance pay calculation criteria’, centering on young employees with less incentives than expected. As employees’ dissatisfaction with the incentives grew, SK Group Chairman Choi Tae-won said, “I will return (SK Hynix) salary and add it to the incentives for employees.” .
The head of the group and the chief executive of the group went on to evolve, but the controversy did not subside. In the end, the labor and management of SK Hynix held a labor-management council on the 4th, and decided to change the standard for calculating the profit distribution (PS), an incentive. Until now, only operating profit was calculated from the economic value added and operating profit minus corporate tax and future investment amount (EVA).
SK Hynix changed the performance-based pay system because of the union, but some argue that the Samsung Metallurgical Coalition will have weaker solidarity than that. This is because the treatment, performance, and circumstances of the eight affiliates are all different. There is also a prospect that it is difficult to find a solution easily. Kim Man-jae, chairman of the Metals Labor Union, said at a press conference on the day, “It cannot be concluded that there is no difference (by affiliate),” and “There are wage systems such as an hourly wage system, a monthly wage system, and an annual salary system”.
“There is a need to link operating profits with incentives,” said Sung Tae-yoon, a professor at Yonsei University’s economics department, but specifically disclosing the rate of incentive payments can affect corporate decision making. “There is no situation.” He added, “There is a need for compensation for individual performance and evaluation.” Dankook University economics professor Kim Tae-gi said, “In the future, the labor-management conflict over incentives is expected to continue,” and said, “If the labor and management agreed on the agreed-upon payment method of incentives, trust will build up.”
The Metals-Samsung Solidarity consists of eight unions, including Samsung Electronics, Samsung Display, Samsung SDI Ulsan, Samsung S1 participation, Samsung Fire, Samsung Fire&Anica’s damage assessment, Samsung Welstory, and Samsung Life Insurance employees.