Samsung union members vote on wage deal that averted 18-day strike

Two-thirds of Samsung Electronics union members cast ballots Friday on a tentative wage agreement that averted an 18-day strike, The Korea Times reported.

The deal, anchored by an uncapped semiconductor performance bonus tied to chip division earnings, could pay out up to 600 million won per employee if Samsung hits its targets — raising the stakes for a company under intense pressure in the global AI chip market.

About 66% of the Samsung Electronics Labor Union's 70,850 members and 69% of the 19,000-member National Samsung Electronics Union cast ballots on the first day of the vote, according to The Korea Times. The vote runs through May 28 and requires more than 50% of eligible members to participate, with a majority needed for ratification.

Under the agreement, Samsung will allocate a special semiconductor performance bonus equivalent to 10.5% of business performance earnings with no ceiling, The Korea Times reported. The bonuses will be paid in company stock over a minimum of 10 years.

The bonus pool is tied to the chip division meeting annual operating profit targets of more than 200 trillion won from 2026 through 2028 and 100 trillion won from 2029 through 2035. The pool would be divided with 40% going to the chip division as a whole and 60% to individual business units within it.

Labor and management had been deadlocked since late 2025 over performance-based bonuses tied to Samsung's AI-related semiconductor earnings, The Korea Times reported. Workers in the device experience division expressed frustration over lower bonus payouts compared with colleagues in the device solutions division.

A decision on how to divide bonuses among loss-making divisions was postponed one year. Samsung's chip division employs about 28,000 workers. Based on a projected 300 trillion won operating profit for 2026, potential payouts could reach 600 million won per chip division employee, according to The Korea Times.

If ratified, the deal would end a labor dispute stretching back to late 2025 and install a new profit-sharing structure for Samsung's chip workforce as the company works to reclaim its footing in the AI semiconductor market.