[Edaily Reporter SOYEON KIM ] Concerns are growing that internal conflicts at SamsungElectronics—which have crossed the line with slander, exposés, and petitions—could adversely affect the company’s long-term competitiveness. In particular, as the Inter-Company Union, SamsungElectronics’ largest labor union, has restricted membership to only 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 Trans-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 Trans-Enterprise Union among DS division employees reached 68.4%. In contrast, the membership rate for the Trans-Enterprise Union among DX division employees is a mere 1.0%. Meanwhile, 60.5% of DX division employees are members of the Donghaeng Union. In the DS division, the rate stands at 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 division 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 proposal to amend the bylaws so that only workers in the DS division can join the union 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 no longer be able to rejoin. This effectively means they intend 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 off, but for the employees, it’s practically the same as if it had.”

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