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South Korea unions push for bigger corporate bonus payouts amid strikes
The demands range from setting aside up to 30% of consolidated profit for bonuses at Hyundai Motor, to asking Kakao and other tech firms to allocate up to 15% of operating profit.
Labor unions across South Korea are stepping up pressure for larger bonus payouts at major employers after Samsung Electronics agreed to hand out bonuses of more than US$400,000 to some workers following protests, according to SCMP Economy.
In the auto sector, assembly-line workers at Hyundai Motor staged a three-day partial strike, seeking bonuses funded by as much as 30% of consolidated profit. At HD Hyundai Heavy Industries and telecoms operator LG Uplus, unions are also pressing for payouts equivalent to at least 30% of operating profit.
The push is spreading beyond traditional manufacturers. Workers at Hanwha Aerospace and HD Hyundai Electric want caps on bonuses scrapped, while tech labor actions have broadened to include a first-time strike at Kakao, with unions demanding that up to 15% of operating profit be allocated for bonuses.
At Naver, the country’s top search engine provider, unions are forming a coalition with counterparts at multiple affiliates to strengthen their negotiating power, as more groups seek to lock in higher bonus commitments across the economy.