Samsung Electronics’ largest labor union has decided to move forward with a significant strike scheduled for next week, rejecting the company’s offer to restart discussions without conditions. The strike, set to last 18 days starting next Thursday, poses a risk of disrupting production at the world’s top memory chipmaker. The union stands firm on its demand for performance-based bonuses to be addressed before further talks, emphasizing its commitment to constitutional rights.
Management’s proposal, aiming to prevent the impending strike, suggested maintaining the current profit-sharing system while adjusting the bonus pool calculation based on either 10 percent of operating profit or economic value added (EVA). Additionally, a new compensation system was proposed to enhance flexibility in incentives. In contrast, the union insists on fixed performance bonuses equal to 15 percent of the semiconductor division’s operating profit, with the removal of payout limitations.
Despite the company’s call for wage negotiations and expressions of regret for the situation, no new proposals were presented to meet the union’s demands. The union leader, Choi Seung-ho, disclosed that over 41,000 unionized workers have expressed intent to join the strike, a number that could potentially surpass 50,000. The government, fearing the strike’s impact on economic growth, has emphasized the need to avert such a scenario to prevent substantial losses to the export-dependent South Korean economy.
Samsung Electronics recently reported a record operating profit for the first quarter, with market projections hinting at a substantial full-year profit. South Korea’s exports, particularly in semiconductors driven by AI data center demand, have been robust, reaching record levels in the first quarter of 2026. The looming strike at Samsung Electronics, if realized, could have far-reaching economic consequences, potentially amounting to significant financial losses.
