Samsung Electronics and its labor union held the first meeting of a task force (TF) on improving the performance-based pay system on the 10th. The labor and management teams decided to meet bi-weekly on Tuesdays to prepare improvement proposals by June.
On the same day, the largest union at Samsung Electronics, the National Samsung Electronics Labor Union (JeonSamno), had a 'kickoff meeting' for the performance-based pay improvement TF with management at the Nano Park in the Giheung campus the day before. The meeting included four representatives from the union, including acting Chairperson Lee Hyun-guk, and four representatives from management.
Starting with this meeting, the labor and management teams plan to derive measures to improve the payment criteria and funding standards for performance-based pay (OPI) and target achievement incentives (TAI) through a total of six meetings.
OPI is a representative performance-based pay system of Samsung that pays up to 50% of an individual's annual salary once a year, limited to 20% of the excess profits when the performance of the affiliated division exceeds the goals set at the beginning of the year. Another performance-based pay system, TAI, is paid differentially based on performance once each in the first and second halves of the year, combining evaluations of the affiliated sectors and divisions, up to 100% of the maximum monthly base salary.
In addition, the labor and management teams are operating a selective welfare benefits TF to discuss personal pensions, medical expenses, meal allowances, and other options.