Seoul: A group of shareholders of Samsung Electronics Co. on Thursday declared their intention to pursue legal action against a tentative wage agreement reached between the company and its labor union, labeling the deal as illegal.

According to Yonhap News Agency, the controversial agreement was reached late Wednesday, just in time to prevent an impending 18-day strike by the union, which was scheduled to begin on Thursday. The deal centers around performance-based bonuses, specifically a special semiconductor performance bonus amounting to 10.5 percent of business performance earnings, uncapped.

The group of shareholders has argued that the agreement is legally void unless it is approved through a resolution at a general shareholder meeting. They made their stance clear during a gathering near the residence of Samsung Electronics Chairman Lee Jae-yong in central Seoul. In the event that a board resolution is proposed for the tentative deal, the group plans to file a lawsuit to nullify the agreement and seek a court injunction to prevent its implementation.

The shareholders contend that the agreement is illegal because it establishes bonus payments without considering taxes. They claim that even after taxes, funds cannot be distributed without going through proper calculation procedures for distributable profits. The group insists that the right to allocate such profits rests with the company shareholders, emphasizing the necessity for a shareholder meeting to make such decisions.

Furthermore, the group has pledged to rally Samsung's shareholders nationwide and has demanded that the union publicly commit to not proceeding with the planned strike if the agreement fails to pass the union member vote. The union members are set to vote on the agreement from Friday through Wednesday.