Seoul: A coalition of unions from 13 Samsung Group affiliates demanded reforms in the group’s performance-based bonus system Tuesday, following a recent change in the system of local rival SK hynix Inc. that is expected to sharply boost its bonus payments.

According to Yonhap News Agency, the alliance called for greater transparency in the calculation of bonuses in a press conference held in front of Samsung Electronic Co.’s Seoul headquarters, pointing to that of SK hynix as a model example. Oh Sang-hoon, the head of the union coalition, criticized Samsung for “unilaterally setting the standards for incentive payouts without consulting the union, only notifying workers of the results.”

The coalition highlighted SK hynix’s system as a benchmark for “transparent performance-based pay,” which they believe exemplifies a labor-management relationship fostering fairness and cooperation. Earlier this year, SK hynix’s management and union agreed to remove the ceiling on profit-sharing payouts and set bonus payments at 10 percent of operating profits.

Samsung Group currently employs the excess profit incentive (OPI) system to calculate bonuses. This system deducts certain costs, such as taxes and investment spending, from the operating profit, which can result in smaller bonus payouts even when profits are high.

The union coalition, representing 300,000 Samsung workers, emphasized their collective demand for Chairman Lee Jae-yong and Samsung Group to consider adopting a transparent bonus system akin to SK hynix’s. They underscored the urgency of this reform in order to ensure fairness and enhance the corporation’s labor-management relations.