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Samsung Union Crisis: 4,000 Members Quit Amid $7,500 Pay Scandal

Daniel Kim Views  

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Samsung Electronics union plans to begin strike on the 21st[Yonhap News photo][Yonhap News photo]

As controversy over position allowances at Samsung Electronics’ cross-company union has intensified, a wave of member resignations has raised fresh questions about the union’s representativeness. Members have complained about how the union’s executive team pays position allowances and manages its finances, and industry sources say roughly 4,000 members from the DX division alone applied to withdraw in the past month. ◇ “Position allowance” loophole in the strike vote? …Chairman said to be receiving ₩10 million (approximately $7,500) a month Industry sources say the cross-company union added a rule at its March general meeting allowing the executive team to allocate up to 5% of monthly dues for position allowances. The proposal went to a vote alongside the strike-authorization ballot, and some members say the allowance provision was added without a separate explanation. Under the new rule, the chair may set position allowances for officers and departmental staff up to 10% of dues. Assuming about 70,000 eligible members each pay monthly dues of ₩10,000 (approximately $7.50), the monthly dues pool would total about ₩700 million (approximately $525,000). Five percent of that—around ₩35 million (approximately $26,250)—could be assigned as position allowances. Some members claim Chairman Choi Seung-ho receives about ₩10 million a month in position allowances (approximately $7,500). Critics warn that if the executive team grows and the allocation rate increases, position allowances could rise to roughly ₩70 million a month (approximately $52,500). The controversy has been sharpened by reports that some executive members retain their company salaries under a working-hours exemption system while also receiving separate position allowances from union dues—a practice members describe as double-dipping.

Chairman Choi Seung-ho after hearing on injunction to bar illegal labor action(Suwon=Yonhap) Reporter Hong Gi-won — Choi Seung-ho, chairman of the cross-company union’s Samsung Electronics branch, answers reporters’ questions after a hearing at Suwon District Court in Yeongtong District, Suwon, Gyeonggi Province, on May 13, 2026, in a petition filed by Samsung Electronics seeking a provisional injunction to prohibit illegal collective action. 2026.5.13 xanadu@yna.co.kr(Suwon=Yonhap) Reporter Hong Gi-won — Choi Seung-ho, chairman of the cross-company union’s Samsung Electronics branch, answers reporters’ questions after a hearing at Suwon District Court in Yeongtong District, Suwon, Gyeonggi Province, on May 13, 2026, in a petition filed by Samsung Electronics seeking a provisional injunction to prohibit illegal collective action. 2026.5.13 xanadu@yna.co.kr

◇ No delegates, concentrated decision-making … critics point to governance flaws Questions about the union’s accounting practices have also persisted. Some members allege the executive team had been receiving allowances even before the rule was formalized, and this year’s delayed financial disclosure has fueled transparency concerns. Critics say the union’s governance lacks proper representation: since its founding, the cross-company union has not held delegate elections, and important decision-making power has been concentrated in a small steering committee. Anonymous workplace forums and internal message boards have amplified allegations about how dues are spent. Some members have demanded publication of allowance receipts and payment details and have even raised the possibility of legal action. ◇ 4,000 members left the union in a month … majority-union status at risk Amid the controversy, member withdrawals have accelerated. Industry sources say nearly 4,000 withdrawal requests were filed in the past month. On April 28 alone, resignations exceeded 500, and the next day they topped 1,000. As of May 15, the union reported it still had 71,750 members. However, continued resignations could jeopardize the union’s majority status. Losing majority status would weaken its bargaining position within Samsung Electronics and could affect processes such as the consolidation of bargaining channels among multiple unions and the maintenance of worker-representative status. Some DX division members have already questioned the current leadership’s legitimacy and are reportedly preparing injunctions asking the courts to halt wage negotiations and planned strikes. Business and academic commentators have urged the union to strengthen transparency and adopt more democratic decision-making. Corporate observers warn that if the leadership does not resolve the allowance and accounting controversies and fails to form a delegates’ council, further member defections are likely. #SamsungElectronics #CrossCompanyUnion #Representativeness #Withdrawals #PositionAllowance Yonhap News TV — For tips and inquiries: KakaoTalk/Line jebo23; Dongwook Kim (DK1@yna.co.kr)

Daniel Kim
content@tenbizt.com

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