Unionized workers at Samsung Electronics have voted to approve a wage agreement, with 73.7 percent of the tech giant’s two largest unions’ members supporting the deal. This decision comes after concerns about potential disruptions to the global supply chain. The agreement was reached just in time, an hour before an 18-day strike was scheduled to start at the top memory chipmaker.
The deadlock between the labor union and management, ongoing since late last year, was primarily over performance-based bonuses linked to earnings from the company’s AI-related semiconductor business. As part of the deal, Samsung will provide a special semiconductor performance bonus equivalent to 10.5 percent of business performance earnings, without a cap. This bonus will be paid in company stock over a minimum of 10 years, based on specific targets for the chip division’s operating profit.
The agreement stipulates that 40 percent of the total bonus pool will go to the division as a whole, while the remaining 60 percent will be distributed among individual business units. With Samsung’s operating profit expected to reach 300 trillion won this year, the deal could result in significant bonus payouts for employees in the chip division. However, a minor labor union from Samsung’s non-semiconductor unit has filed for a court injunction, challenging the tentative wage deal reached with management.
The union members argue that the largest labor union at Samsung did not respect their rights to equality and voting. They have taken legal action to seek a rational alternative for the marginalized union members of the device experience (DX) division. Additionally, they plan to file a lawsuit to invalidate the vote, emphasizing their commitment to fighting for fair treatment within the company.
