Seoul: A coalition of unions from 13 Samsung Group affiliates is poised to demand reforms in the group’s performance-based bonus system. This move follows a recent change in the bonus system of local competitor SK hynix Inc., which is anticipated to significantly increase bonus payments.

According to Yonhap News Agency, the alliance plans to advocate for greater transparency in the calculation of bonuses during a press conference scheduled to take place in front of Samsung Electronics Co.’s headquarters in Seoul. The coalition is pointing to SK hynix’s system as a model to emulate.

Earlier in the year, SK hynix reached an agreement with its union to eliminate the cap on profit-sharing payouts and set bonus payments at 10 percent of operating profits. In contrast, Samsung Group currently employs the excess profit incentive (OPI) system. This method calculates bonuses by deducting certain expenses, such as taxes and investment spending, from the operating profit, which can result in relatively small bonus payouts even when profits are high.

The union coalition, representing 300,000 Samsung workers, expressed their intent to hold the press conference to urge Chairman Lee Jae-yong and Samsung Group to consider adopting a transparent bonus system akin to that of SK hynix. “We decided to hold the press conference to urge Chairman Lee and Samsung Group to adopt a transparent bonus system,” the alliance stated in a release.