Samsung Electronics’ device-making and chipmaking divisions are locked in a deepening dispute over employee incentives, as workers in the smartphone and home appliance businesses express anger at a large pay gap with staff in the chip sector. Employees in the Device Experience (DX) area, which covers devices such as smartphones and home appliances, are protesting what they describe as nearly a 100-fold difference in compensation compared with employees in the chipmaking Device Solutions (DS) division. Samsung Electronics Company Union (SECU), largely composed of DX division employees, plans to hold a rally at the company’s plant in Suwon, Gyeonggi Province, on Thursday under a “same company, same rights” message.
The conflict centers on a May wage agreement that grants DS division employees performance incentives that can reach up to 600 million won (about US$402,000). SECU says many DX employees joined earlier protests over that agreement and has grown to become the company’s second-largest labor union. As of Wednesday morning, SECU has 28,569 members, roughly 55% of the DX division’s workforce of 51,700, according to the reports.