Samsung reaches deal after five-month talks

Samsung Electronics and its labor union formally signed a wage agreement Wednesday, ending a five-month dispute over performance bonuses and removing the threat of a strike that had cast a shadow over the company’s semiconductor business.

The tech giant also unveiled a 5 trillion won initiative aimed at supporting shared growth and cultivating future talent. The signing ceremony was held at Samsung’s The Universe training center in Yongin, Gyeonggi Province, capping negotiations that began in December.

The two sides reached a tentative agreement late on May 20, on the eve of a planned general strike. Union members voted on the proposal beginning May 22. Of the union’s 65,593 members, 62,616 participated, with 46,142 backing the deal. The agreement was approved with a turnout of 95.5% and a support rate of 73.7%.

The settlement significantly boosts compensation for employees in Samsung’s Device Solutions division, which houses the company’s semiconductor operations. Workers will receive a special bonus equivalent to 10.5% of the division’s operating profit this year on top of the existing operating profit incentive program. Combined, the bonus pool will amount to roughly 12% of annual operating profit.

If the division reaches its projected operating profit of 300 trillion won this year, employees in the memory-chip business could receive bonuses of around 600 million won each, according to industry estimates.

Shortly after the agreement was finalized, Samsung’s leadership issued a public apology and pledged to invest 5 trillion won over the next five years in programs designed to strengthen the broader business ecosystem and nurture future talent.

“We will reinforce our social responsibility efforts so that Samsung’s growth and success can generate positive benefits throughout society,” the company said in a statement.

The announcement comes amid growing debate over how the substantial gains generated during the semiconductor boom should be shared. Details of the initiative will be finalized following discussions by Samsung’s board of directors and compliance oversight committee.

While the agreement has averted a strike, it has not fully eased concerns over disparities within the company.

Employees in the Device eXperience division, which includes Samsung’s smartphone business, will receive company shares worth 6 million won per person under the settlement, a considerably smaller payout than that expected in the semiconductor division.

Roh Tae-moon, head of Samsung Electronics’ Device eXperience division, acknowledged in an internal message Wednesday that he bears responsibility for the division’s performance lag behind other parts of the company.


이동훈 dhlee@donga.com