Leeno Industrial tables third wage proposal as union holds firm on indefinite strike

Leeno Industrial, the Busan-based company that ranks first in market capitalization among Busan firms and holds the top global position in semiconductor test sockets, has put forward a third revised proposal — comprising two alternative options — at the ninth round of wage and collective bargaining negotiations.

The union, however, is effectively demanding a fixed bonus of 1,000 percent of base pay, a separate year-end performance bonus on top of that, and a bargaining settlement payment limited to union members, raising fears that the talks could collapse entirely.

Management presented the two options on Thursday, one concentrating resources on performance-based bonuses and the other combining an additional base-pay raise with new and expanded allowances, bonuses and welfare benefits.

The first option centers on paying a first-half performance bonus equivalent to 700 percent of base pay.

The second option offers a first-half performance bonus of 300 percent alongside an additional base-pay increase of 50,000 won ($35) per month — on top of an average 6 percent raise already granted earlier this year. It also introduces a monthly 50,000 won transportation allowance for entry-level staff, effectively boosting fixed pay while narrowing the wage gap between job grades that the union has long flagged as a concern.

Alongside this, the company proposed creating Lunar New Year and Chuseok bonuses of 1 million won each, reflecting the union's push to broaden the scope of ordinary wages, and introduced family allowances as well as childbirth and school-enrollment congratulatory payments. Key condolence and congratulatory payments were also expanded.

The union, for its part, has shifted its earlier demand for a regular bonus of 800 percent and a performance bonus equal to 15 percent of operating profit. It now seeks a regular bonus of 400 percent, performance bonuses of 300 percent each for the first and second halves of the year, a separate year-end management performance bonus, and a bargaining settlement payment — available only to union members — to compensate for wages lost during the strike.

Management said it cannot accept these terms, arguing that a performance bonus with a predetermined payment schedule and ratio is in effect a fixed bonus, and that a bargaining settlement payment would violate the no-work, no-pay principle. The Supreme Court has also ruled that a performance bonus paid at a fixed amount regardless of work performance constitutes remuneration for labor.

"The union's demands are in effect ordinary wages, and given the nature of our business — where delivery deadlines are critical and overtime and weekend work are frequent — the company simply cannot absorb what the union is asking for," the company said.