Samsung Union approves wage deal to avert strike; Secures 10.5% chip profit bonus pool

Seoul [South Korea], May 27 (ANI): Samsung Electronics avoided a looming labor disruption after union members voted on Wednesday to approve a tentative 2026 wage and bonus agreement. The deal introduces a special management bonus pool equivalent to 10.5 per cent of the operating profit from the company's semiconductor business.
According to a news report by The Korea Herald, the package received approval from 73.7 per cent of the 62,616 union members who cast ballots. Total voter turnout reached 95.5 per cent of the 65,593 eligible voters.
Earlier, the National Labor Relations Commission also intervened by asking both parties to consider a post-mediation process. This specific mechanism allowed the commission to act as a mediator even after formal mediation ended, provided both sides gave their consent.
However, the negotiations broke down after the electronics behemoth didn't accept one of the demands made by the union on bonus payments.
Then the labor and management reached the agreement on May 20, just hours before a planned walkout threatened to halt production. The resulting bonus allocation targets workers in the Device Solutions division, which manages the tech giant's global semiconductor operations.
The deal links worker compensation directly to the financial recovery of the chip sector. Under the terms of the newly ratified contract, "If Samsung Electronics records 300 trillion won (USD 200 billion) in operating profit this year, memory business employees earning annual salaries of 100 million won could receive roughly 550 million won in special management bonuses before taxes, paid in company shares."
The newly established bonus structure operates alongside existing corporate reward systems. The text from the agreement notes:
"Combined with the company's regular excess profit incentive, which is capped at 50 per cent of annual salary, total performance-related compensation could reach around 600 million won," the report noted. (ANI)

(This article was generated from news agency ANI without modifications to the text.)