Disappointing bonuses at Samsung Electronics anger some employees

Industry

Published: 06 Jul. 2021, 18:46

Disappointing bonuses at Samsung Electronics anger some employees

Employees enter the Samsung Electronics building in Seocho District, southern Seoul. [NEWS1]

Some employees at Samsung Electronics are up in arms over their bonuses as the semi-annual payout was lower than hoped due to events beyond their control.

Workers from the foundry and system semiconductor divisions and the smartphone business will receive 75 percent of their monthly base salaries, while people from memory chip, consumer electronics and network equipment businesses are entitled to 100 percent, according to a notification on the company’s intranet Monday.

The bonuses, which are contingent upon the achievement of predetermined goals, are issued twice a year. Trouble in Austin, where a foundry plant was temporally shut due to a cold snap, is partly to blame for the lower bonus.

Numerous posts expressing discontent over the decision instantly flooded an anonymous forum at the corporate website.

“They point a finger at the Austin plant for poor outcome, although all the headquarters did was help it get back to normal,” an employee wrote.

Another worker also noted that “Employees from the foundry business are greatly disappointed, and this is not solely about the size of the bonus.”

“We poured physical and human resources to start the factory that had been hit by natural disaster,” the disgruntled worker said, “but as a result, we are awarded lower bonuses.”

The sentiments resonate with those from smartphone business.

“I have no idea why the incentive rate is set at 75 percent. This is the first time to surpass 6 trillion won in operating profit during the second half of this year,” said a worker from the division referring to smartphone operating profits in the second half of 2020.

A source from the electronics company explained that the ratio is determined based on performance relative to established benchmarks.

“On top of sales and operating profit, factors include certain objectives set by the division and market share,” the source said, “So, it is hard to say that the earnings are the sole basis.”

BY CHOI EUN-KYUNG, PARK EUN-JEE [park.eunjee@joongang.co.kr]