Samsung Union Bonus Demand Raises Concern Over Profit-Sharing Precedent

Korea Enterprises Federation Chairman Sohn Kyung-shik said in an interview with Dong-A Ilbo on May 12 at the KEF hall in Daeheung-dong, Mapo-gu, Seoul, that he is concerned about Samsung Electronics union’s demand for an annual bonus equal to 15% of operating profit. Sohn said bonuses should be assessed by individual contribution, while uniformly distributing company profit to everyone is without global precedent. He warned that such profit sharing could become a precedent and spread to other companies. Sohn also said a semiconductor strike could have a greater impact than disputes in other industries because semiconductors account for 37.1% of Korea’s exports and are tied directly to economic security. He cited Germany, once a semiconductor power, as having lost competitiveness amid labor-management issues and slow decision-making, mentioning Qimonda, a former DRAM leader that went bankrupt in 2009. Source: rss.donga.com