Samsung's unionised workers in South Korea approve pay deal
Nearly 74% of union members backed the pact, which gives chip workers an average 6.2% raise and bonuses tied to profit targets.
- On Wednesday, Samsung Electronics unionised workers in South Korea voted to approve a tentative wage deal, with 44,606 of 57,332 eligible members supporting the agreement for an 80.6 percent approval rate, averting a strike threatening global chip supplies.
- A bitter five-month dispute over performance bonuses tied to Samsung's booming AI chip business prompted labor action after workers learned SK Hynix colleagues received six-figure bonuses; negotiations collapsed two weeks ago before South Korea's Labour Minister mediated a tentative agreement on May 20.
- The agreement establishes a special management performance bonus exclusively for Device Solutions division employees, funded with 10.5 percent of operating profit, with Bloomberg estimating 57,302 chip workers will receive an average bonus of 513 million won, or $340,000, alongside a 6.2 percent wage hike.
- Samsung shares hit new heights and rose 6.7 percent by Wednesday morning, with Bloomberg noting an 8 percent increase at deal approval, as the agreement brings a temporary end to the monthslong labor dispute.
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Tens of thousands of employees in the...
Samsung Pay Deal Boosts Union Power in South Korea
Samsung Electronics has reached an agreement with its union that prevents a large strike and offers significant bonuses to its memory chip workers. This deal could set a precedent for other companies in South Korea, a country known for strong union demands. Unionized Samsung workers voted to accept a plan negotiated with the government, marking […] The post Samsung Pay Deal Boosts Union Power in South Korea appeared first on Modern Diplomacy.
While Samsung makes exceptional profits thanks to the artificial intelligence market, the employees demanded a better sharing of profits and even threatened to strike for 18 days. Finally, after an intervention by the South Korean Labour Minister, the two parties agreed to an agreement.
The union members validated on Wednesday the income-sharing agreement of the flea giant to its division of semiconductors.
Samsung averts strike with $340,000 bonuses for semiconductor workers
Samsung sits at the center of today's computing stack, turning out memory chips used in smartphones, electric vehicles, and the high-performance servers that run large-scale AI models. With the memory sector already facing shortages and sharply higher prices, even a short stoppage could have rippled across multiple industries.Read Entire Article
Samsung Strikes Deal with Workers for Profit Sharing in the Company's Trillion Dollar Slice of the AI Pie
Following eye-watering Q1 performance, some 48,000 of Samsung’s semiconductor division workers are set to receive a new profit-sharing-style bonus structure that will give a bigger slice of the AI pie to those making baking it. Samsung’s compensation package was among the country’s most generous, as the tech giant accounts for a staggering 16% of national […] The post Samsung Strikes Deal with Workers for Profit Sharing in the Company’s Trillion…
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