Samsung Union Suspends Strike After Last-Minute Deal
The tentative deal covers wages and bonuses after talks over Samsung’s performance-based pay system and could avert losses estimated at 100 trillion won.
- On Wednesday, Samsung Electronics Labor Union suspended a planned 18-day strike just before it began after reaching a tentative wage agreement with management, averting potential production disruptions.
- Labor Minister Kim Young-hoon mediated intensive negotiations at the National Labor Relations Commission that broke the deadlock after talks had stalled since November last year.
- The tentative agreement creates a special management performance bonus for Samsung Electronics Device Solutions funded by 10.5 percent of business indicators, bringing total payouts to 12 percent over a 10-year period.
- Nearly 48,000 union members will vote on the proposed 2026 wage deal from 9 a.m. Saturday through 10 p.m. May 28, with union leader Choi Seung-ho expecting member approval.
- Despite the averted strike, Samsung Electronics must address internal friction between divisions, as employees from the Device Experience division previously protested that their demands were ignored during negotiations.
35 Articles
35 Articles
A strike at Samsung would have an impact worldwide. At the last minute it could be averted - at least for the time being. The South Korean electronics company is the world's largest producer of memory chips.
10.5% of semiconductor business performance to be distributed entirely in treasury shares without a cap… 6.2% wage increase… Union conveyed instructions to suspend general strike… Agreement to be finalized if union vote on approval/disapproval from the 22nd to the 27th passes. Repeated difficulties over performance bonus funding and distribution ratios… Dramatic settlement reached through mediation by the Minister of Labor.
Samsung Elec's South Korean labour union to vote on tentative pay plan -union
Samsung Electronics and its South Korean labour union reached a preliminary pay deal on Wednesday, potentially averting a planned lengthy strike that threatened to disrupt the production of AI and other chips.
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