The recent vote by Samsung's two largest unions has led to a significant wage agreement for chip workers, with bonuses reaching up to $400,000. This decision was approved by 73.7 percent of the unions' 62,616 members over a six-day voting period that began on May 22. The company's chip division, employing around 28,000 individuals, is expected to benefit from Samsung's projected operating profit of up to KRW 300 trillion this year, allowing for substantial payouts.
Despite the favorable vote, tensions have arisen among non-chip workers regarding the bonus distribution. The anticipated bonuses will be paid in company stock over a span of at least ten years, contingent on the memory division achieving specific profit targets. This agreement comes after a potential strike was averted just an hour before it was set to start, following mediation by South Korean Labor Minister Kim Young-hoon.
Samsung's largest union, representing 48,000 members, had previously threatened an 18-day strike, which could have significantly impacted both the company and the South Korean economy, given that Samsung constitutes 12.5 percent of the nation's GDP. The South Korean Prime Minister projected that losses from the strike could reach around KRW 1 trillion ($669 million).