Seoul: Unionized workers of Samsung Electronics have voted to approve a new wage agreement that includes a notable bonus package for chip workers, as confirmed by the union on Wednesday. This decision alleviates concerns about potential disruptions in the global supply chain.
According to Yonhap News Agency, the six-day voting period saw 73.7 percent of the 62,616 members from Samsung's two largest unions supporting the tentative deal. The agreement was finalized after a majority of eligible voters participated and voted in favor. Following the vote, both parties signed the wage agreement, with Samsung's management committing to enhancing the company's global competitiveness.
Yeo Myeong-gu, head of the Device Solutions division's People Team at Samsung, expressed in a press release that labor and management will collaborate to strengthen their global presence, starting with the conclusion of this wage agreement.
The labor union and management reached the agreement just an hour before an anticipated 18-day strike was set to commence at the world's leading memory chipmaker. The deadlock had persisted since late last year over performance-based bonuses related to the company's earnings from its AI-focused semiconductor business amid the ongoing global memory chip surge.
Under the terms of the deal, Samsung will allocate a special semiconductor performance bonus, equivalent to 10.5 percent of business performance earnings, with no cap. These bonuses will be distributed in company stock over a minimum of 10 years, contingent on the chip division achieving more than 200 trillion won (approximately US$132 billion) in annual operating profit from 2026 to 2028 and 100 trillion won from 2029 to 2035.
The bonus pool distribution will see 40 percent allocated to the division as a whole, while 60 percent will be distributed among individual business units. Given forecasts that Samsung's operating profit could reach 300 trillion won this year, the agreement might result in bonus payouts of up to 600 million won for each of the 28,000 employees in the chip division.
Following the agreement, Samsung announced plans to create a 5 trillion-won fund over the next five years. This fund aims to invest in future talent development and build an ecosystem that supports its suppliers and underprivileged groups. The company's executives stated, "Over the next five years, we will raise a total of 5 trillion won to invest in win-win cooperation and building a healthy ecosystem, as well as nurturing future talent."
This initiative is perceived as an effort to address criticism regarding the distribution of substantial profits from the semiconductor supercycle as excessive employee bonuses.