Samsung Workers Back Bonus Deal With 74% Vote, Averting 18-Day Strike
Updated
Updated · Reuters · May 27
Samsung Workers Back Bonus Deal With 74% Vote, Averting 18-Day Strike
16 articles · Updated · Reuters · May 27
74% of 62,616 voting unionized Samsung workers approved a government-mediated bonus deal, heading off an 18-day walkout by 48,000 employees after a five-month dispute.
The agreement gives all chip workers a cash bonus equal to 50% of annual salary and sets aside 10.5% of chip operating profit for stock bonuses tied to profit targets.
Some memory-chip employees stand to receive about $416,000 this year as AI-driven demand lifts profits, while workers in other chip units get less and consumer-electronics staff far less.
Samsung shares jumped 6%, with relief spreading in South Korea because the company accounts for roughly a quarter of the country's exports.
The deal also highlights widening internal pay gaps as Samsung races to close ground on SK Hynix, whose AI-linked chip profits helped force the bonus overhaul.
Did Samsung’s massive payout avert a crisis or just postpone a bigger industry showdown?
Is Samsung’s deal creating a new class of super-rich workers, widening social inequality?
Samsung’s Record AI Profits Ignite Labor Showdown: $218 Billion Windfall Spurs Unprecedented Bonus Pact and Employee Unrest
Overview
On May 20, 2026, Samsung Electronics and its labor union reached a last-minute agreement on wages and bonuses, narrowly avoiding a major strike that was set to begin the next day. The deal includes special bonuses for employees, funded partly with company stock over at least 10 years, and is tied to the chip division meeting specific profit targets. This agreement came after record profits driven by the AI boom, but it has sparked internal divisions, as some employees and shareholders are unhappy with how the bonuses are distributed. The outcome highlights ongoing challenges in balancing profits, employee demands, and company unity.