Samsung's Super-Union Weighs Split Between Chip and Device Divisions

The Samsung Group Superenterprise Labor Union is considering a fundamental restructuring of its bargaining process by splitting negotiations into separate tracks for the semiconductor (DS) and device experience (DX) divisions. This potential move follows a period of intense internal conflict and a growing divide between workers in the company's chip and consumer electronics businesses.

The friction reached a breaking point during 2026 wage negotiations, prompting the 'Companion Union' (Donghaeng), which is primarily composed of DX employees, to withdraw from the joint struggle headquarters. The Companion Union further escalated the dispute by filing a court injunction to halt the vote on a tentative agreement. The core of the conflict lies in a stark disparity in performance bonuses: while DX employees remained subject to a 50% annual salary cap on their overall performance incentive (OPI), the union sought a special management performance bonus for the DS division funded by 10.5% of operating profit with no payout cap. This disparity meant that employees in the DS division's memory chip business could have received bonuses of up to approximately 600 million won.

Structural Divide

Samsung Electronics operates under a multiple-union system, but the DS and DX divisions have historically functioned with vastly different organizational cultures and earnings structures. The semiconductor business is subject to the volatile cycles of the global chip market, while the DX division handles mobile phones and home appliances. In recent years, these differences have fueled labor unrest, leading to the first strikes in the company's 55-year history. Workers have consistently demanded more transparent bonus calculations and fairer compensation across the various business units to prevent one sector from feeling marginalized by the other.

Implications for Labor Power

This potential fragmentation signals a breakdown in the 'super-union' model, which was designed to consolidate bargaining power. By moving toward separate tracks, the union acknowledges that the economic realities of the semiconductor market are too distinct from those of consumer electronics to be handled under a single umbrella. While this shift may allow for more specialized demands that reflect the specific financial performance of each division, it risks weakening the overall leverage of the workforce against management by dividing the labor front.

Future Outlook

Union leadership has indicated that the shift is a response to the need for more targeted improvements. "We plan to focus on improvements to LSI and foundry going forward, and we are considering separating DS and DX bargaining," said Choi Seung-ho, Chairperson of the superenterprise union. Observers are now watching to see if this separation will stabilize internal relations or lead to further fragmentation of the workforce as different divisions compete for a larger share of the company's profits.