A threatened mass strike by unionised workers at Samsung in South\nKorea has reignited a debate on labour welfare, rooted in a global\nmemory chip shortage that pitted the chip division\u2019s employees against\nmanagement. Samsung, the world\u2019s largest memory chip producer, has\nreaped enormous profits from the crisis triggered by the AI boom, with\nits market capitalisation surpassing US$1 trillion for the first time\ndue to soaring demand. However, workers argued the company\u2019s stellar\nbusiness performance was not reflected in their welfare, demanding\nchanges to salary and bonus schemes linked to company profits. After\ntough discussions, union and management reached a compromise and the\nstrike was called off, though a new issue emerged among workers when the\nnon-chip divisions claimed the bonus and salary scheme was uneven and\nonly benefited chip division staff.<\/p>\n
Beyond the dispute, a wider discussion has arisen on how companies\nshould treat workers and the broader ecosystem, especially when business\nis booming. In an interview, Labour Minister Kim Young-hoon stated\ncompanies like Samsung, which have exceeded profit targets, should\nconsider distributing excess profits after tax to suppliers,\nsub-contractors, and workers. Kim argued that many parties contribute to\na company\u2019s growth, and when a company ascends, the rest of the\necosystem should also taste the rewards. He insisted that the\ngovernment, businesses, unions, and suppliers must all engage in public\ndialogue on channelling \u2018excess profits\u2019 and narrowing the gap between\nlarge conglomerates and small suppliers.<\/p>\n
Kim, a former labour activist appointed by left-wing President Lee\nJae Myung who helped mediate the last-minute deal between Samsung\u2019s\nmanagement and union, stated new rules for distribution must be\nestablished through social dialogue. He acknowledged that Samsung\u2019s\ngreat success is the result of the dedication and effort of both the\nworkforce and management, but noted there are also 1,700 suppliers and\nlocal communities involved, including in supplying water and\nelectricity. Profits at Samsung and its rival SK Hynix have surged due\nto increasing AI usage fuelling demand for memory chips. Samsung has\nalready agreed to grant special bonuses to employees if it achieves\nannual operating profits of more than 200 trillion won from 2026 to\n2028.<\/p>\n
Kim first floated the idea of public dialogue on what to do with\nexcess corporate profits in late May and has since said he plans to hold\na forum on the matter. He shared his ideas on what constitutes excess\nprofits and how they could be shared, such as adjusting supplier prices,\nfor the first time. However, Kim drew criticism from the conservative\nopposition People Power Party (PPP), which said he has put forward a\ndangerous idea of state intervention that undermines the foundations of\nthe free market economy. The presidential office previously said Kim\u2019s\ncomments had raised important questions for the country and welcomed the\nidea of debate. A senior South Korean policymaker also last month\nsuggested paying citizens a \u2018dividend\u2019 using excess tax revenues from AI\nprofits. Samsung and SK Hynix declined to comment.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/south-korean-labour-minister-urges-chip-giants-to-share-ai-windfall-with-workers-and-suppliers-1780642325", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }