Samsung Union Protests Proposal to Pay Wages in Local Currency Vouchers

The Samsung Group Super-Enterprise Union, the largest labor union at Samsung Electronics, has voiced strong opposition to a proposed amendment to the Labor Standards Act that would allow a portion of wages, such as performance bonuses, to be paid in local currency vouchers, calling for the bill to be withdrawn.

In a statement released today (July 10), the union argued, "Even with the explicit consent of workers, allowing a portion of wages to be paid in local currency vouchers is a dangerous attempt that shakes the foundation of wage payment." They added, "The amendment, which undermines the principle of paying wages in legal tender, must be withdrawn immediately."

The union further asserted, "If you are convinced that local currency vouchers are no different from legal tender, we hope you apply this experimental attempt not to workers' wages, but to the salaries of the lawmakers who put their names on the bill."

Previously, Representative Park Min-kyu of the Democratic Party of Korea proposed the amendment to the Labor Standards Act on July 8, which would allow a portion of wages to be paid in means other than legal tender, such as local currency vouchers, provided there is explicit consent from workers or a collective agreement.

The Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU) also demanded the withdrawal of the bill, stating that it could undermine the principle of paying wages in cash.

This controversy arose amid expectations that the semiconductor industry would see significant performance bonuses. Securities firms project that Samsung Electronics' DS Division and SK Hynix will each post operating profits of around 400 trillion won and 300 trillion won, respectively, this year.

Consequently, it is expected that the performance bonuses to be paid to employees of Samsung Electronics' DS Division and SK Hynix early next year could reach hundreds of millions of won per person on average.

Among employees at Samsung Electronics and SK Hynix, there has recently been a movement to encourage participation in a national petition to the National Assembly, opposing policies that would claw back excess profits from semiconductor companies.

Representative Park Min-kyu of the Democratic Party of Korea, who proposed the amendment to the Labor Standards Act to allow corporate performance bonuses to be paid in local currency, withdrew the bill following fierce backlash from the labor sector.

Reported by Kim Minjeong | Video by Hong Jinyoung | Graphics by Lee Sumin | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.