[E-Daily Reporter SOYEON KIM ] Concerns are growing that internal conflicts at SamsungElectronics—which have crossed the line into defamation, exposés, and petitions—could negatively impact the company’s long-term competitiveness. In particular, as the Inter-Company Union, SamsungElectronics’ largest labor union, has limited membership to employees in the Semiconductor (DS) division, the company’s labor unions have been reorganized into separate DS and Finished Products (DX) unions.

According to industry sources on the 20th, the conflict between the Inter-Enterprise Union—centered on the DS division—and the Donghaeng Union—composed mainly of DX division employees—is intensifying. As of late August, the membership rate for the Inter-Enterprise Union among DS division employees reached 68.4%. In contrast, the membership rate for the Inter-Enterprise Union among DX division employees is a mere 1.0%. Conversely, 60.5% of DX division employees are members of the Donghaeng Union. In the DS division, the rate is around 0.8%.

The conflict between the two divisions over performance-based bonuses has effectively split SamsungElectronics in two. The inter-company union has made it clear that it will conduct negotiations focused on the semiconductor sector and is pushing for separate negotiations with the DX division. It has also amended its bylaws to allow only DS employees to join.

In a recent vote held by the Inter-Company Union, a bylaw amendment restricting union membership to DS division employees passed with 96.3% approval. As a result, DX employees who were previously members of the Inter-Company Union will be forced to withdraw and will be barred from rejoining. This move effectively aims to expel even the very few remaining DX employees. Motions of no confidence against Vice Chair Lee Song-i of the DX division and Gwangju Branch Chair Lee Won-il also passed with approval rates of 95.7% and 96.2%, respectively. While the Donghaeng Union is demanding joint bargaining between DS and DX, the Inter-Company Union plans to proceed with negotiations exclusively for DS.

Given the enormous disparity in performance-based bonuses between the two sides, it is clear that labor-labor conflict will continue year after year. Even within and outside the business community, there are comments such as, “The company hasn’t officially split up, but for the employees, it’s practically as if it has.”

The problem is that intense labor-labor conflict could erode long-term competitiveness. Management argues that the performance-based pay system must be overhauled to reflect current trends, and that both unions must engage in dialogue accordingly to compete on the rapidly changing global stage. A former Samsung executive stated, “We must revive Samsung’s unique ‘one team’ competitiveness, a tradition that has been passed down from the past.”