Samsung Electronics labor union urges Chairman Lee to revamp bonus system
A Samsung flag is seen at the company's headquarters in Seoul, July 17. Yonhap
Unionized workers of Samsung Electronics sent a letter to Chairman Lee Jae-yong on Tuesday, demanding the company improve the transparency of its bonus system.
In a document sent to the de facto head of Samsung Group, workers demanded the adoption of a more transparent bonus evaluation system and the abolition of the current framework based on economic value added (EVA).
"While SK hynix recently decided to allocate 10 percent of its annual operating profit to its bonus program, Samsung Electronics is still using the EVA method, which lacks transparency," the union said.
A day earlier, SK hynix and its labor union reached a tentative wage deal under which the company will allocate 10 percent of its annual operating profit to the profit-sharing bonus program, while scrapping the cap that had been limited to 1,000 percent of employees' basic pay.
"Under the current system, bonuses can be zero even when the company posts a large operating profit, and there also is a ceiling," the union said.
"Although it is too late to restore workers' trust, the company should at least show a willingness to change," the union added.