[E-Daily Reporter Shin Yeong-bin ] Just one day after the first labor union in Samsung SDS’s (SAMSUNG SDS CO., LTD.(018260)) history was launched, the number of applicants seeking union membership reportedly reached approximately 5,800. The union stated that it had secured a majority based on the total number of employees and demanded that the company halt the process of amending employment rules and engage in formal negotiations.

According to industry sources on the 7th, the Samsung SDS branch of the Samsung Group Inter-Company Labor Union issued a declaration that day announcing it had achieved majority status, stating, “We hereby announce that, as of this moment, we have become a majority union.”

The Samsung SDS branch stated, “Since the announcement of the union’s establishment, approximately 5,800 colleagues have applied for membership,” adding, “Even when conservatively accounting for various variables based on the officially reported headcount, this number is sufficient to represent the will of the entire workforce.”

The Samsung SDS branch began recruiting members the day after its launch. The union stated that the number of applicants exceeded 1,500 within just one hour of its launch and explained that it secured majority union status within a single day.

The union viewed the scale of this membership drive as reflecting employees’ concerns regarding the company’s recent restructuring of its personnel and compensation systems. In its declaration, the Samsung SDS branch stated, “The fact that thousands of colleagues acted in unison within just a single day is a clear indication of the deep-seated lack of communication and the strong desire for change that have accumulated in the workplace.”

Samsung SDS has recently been pushing to abolish its existing Performance Incentive (PI) system and introduce a new performance-based compensation system, including the distribution of company stock. Although the company held briefings for executives and employees and conducted a company-wide vote, some employees continued to raise concerns about whether sufficient explanation and feedback had been provided during the reform process.

The union demanded that the company suspend the announcement of the results of the company-wide vote on the amendment to the employment rules—scheduled for the 8th—and any subsequent procedures. The Samsung SDS branch argued, “If a labor union organized by a majority of employees is established before the procedure to amend the employment rules is completed, the authority to consent to the amendment shifts to the majority union, rather than an individual company-wide vote.”

They continued, “Even when conservatively accounting for the margin of error, the current number of registered members clearly constitutes a majority,” adding, “The company-wide vote the company had been conducting has lost its legal validity as the entity authorized to grant consent under the Labor Standards Act.” They further stated, “Any amendment to the employment rules without the official consent of the majority union is procedurally unlawful and cannot be recognized as legally valid.”

The union requested that the company immediately suspend the announcement of the vote results on the employment rules amendment and any follow-up procedures, and engage in formal dialogue with the majority union regarding the proposed changes. The branch stated, “The voluntary participation shown by thousands of colleagues is not an attempt to confront the company, but an expression of their desire to work together to build a better Samsung SDS within the framework of the law and principles.”

Meanwhile, the Samsung SDS branch plans to undergo official verification procedures in the future to confirm its status as the majority union. The company has been conducting employee briefings and voting procedures regarding the reorganization of the performance-based compensation system.