[E-Daily Reporter Shin Yeong-bin ] A labor union has been launched at Samsung SDS (SAMSUNG SDS CO., LTD.(018260)) for the first time since the company’s founding. Amid ongoing internal controversy over the recent restructuring of the performance-based compensation system, the Samsung SDS branch of the Samsung Group Inter-Company Labor Union has begun actively recruiting members.

According to industry sources on the 6th, the Samsung SDS branch of the Samsung Group Inter-Company Labor Union issued a declaration of its launch that day and began accepting membership applications. This marks the first time a labor union has been established at Samsung SDS since its founding.

The union has set out its core objectives as protecting employee rights, establishing a fair evaluation and compensation system, and strengthening communication with the company. Given the recent employee dissatisfaction surrounding the restructuring of the performance-based compensation system, the union is expected to actively advocate for improvements to the compensation system and working conditions moving forward.

The union’s launch coincided with Samsung SDS’s recent push to overhaul its performance-based compensation system. Last month, Samsung SDS abolished its existing Productivity Incentive (PI) system and moved to introduce a new performance-based compensation framework that includes the distribution of company stock. The new system is reported to incorporate factors such as operating profit, stock price, and industry indices into the calculation of performance bonuses.

Although the company held briefings for employees and conducted a vote on the matter, some employees continued to raise concerns about whether sufficient explanation and input had been provided during the process of changing the system. In its declaration of formation, the Samsung SDS branch also argued that the abolition of the PI system, changes to performance bonus criteria, and the reorganization of the personnel system were pushed through without explanations that members could accept.

Hong Gwang-heum, chairman of the Samsung Group Inter-Company Labor Union, explained, “The background for establishing the Samsung SDS union stems from employees’ concerns regarding attempts to illegally alter employment rules,” adding, “The fact that membership exceeded 1,500 within just one hour of the union’s launch demonstrates the level of interest among employees.”

It is reported that the establishment of this union was pursued separately from the existing employee representative body, the “Mi-Gong-Gam” Council. Chairman Hong said, “We determined that there was no procedure to hear employee opinions in the decision-making processes involving the Mi-Gong-Gam Council and the company, and the union was established as an expression of our stance on this issue.”

The union plans to encourage membership with the goal of securing a majority of employees. The aim is to create an official channel through which employee opinions can be reflected during major changes to the company’s policies. Regarding its operational direction, the union outlined plans to serve as a partner in the company’s reasonable growth, operate in a way that encompasses all employees, ensure transparent decision-making and communication, and disclose details on the use of union dues.

However, the company maintains that it has already conducted briefings for executives and employees and implemented a voting process regarding the restructuring of the performance-based compensation system. The vote is scheduled to run until midnight on the 7th. It remains to be seen how the launch of the Samsung SDS union will affect future discussions on the company’s personnel and compensation systems, as well as labor-management relations.