Samsung Electronics reaches agreement on bonuses, bringing labor dispute to a pause as concerns over wider fallout persist
Samsung Electronics' labor and management 5 month 20 day reached a tentative agreement just before a strike, averting the semiconductor strike threat. The agreement set the bonus pool at 10.5% of business performance and tied eligibility for payment to the DS division meeting its operating profit target.
Samsung Electronics' labor and management 5 month 20 day reached a tentative agreement just before a planned strike. An agreement was reached in talks facilitated by the Minister of Employment and Labor, and for now the strike has been put on hold. The company and union went through ex post mediation, with negotiations repeatedly breaking down and resuming.
The agreement specified how performance would be shared. The bonus pool was set at 10.5% of business performance. Whether bonuses are paid will depend on the DS division's performance.
The agreement included payment conditions and a time period. From this year through 2028, bonuses will be paid only if operating profit reaches 200 trillion won. The company said it would finalize bonus payments based on whether the target is met during that period.
For the following period, a different criterion will be applied. 2029From 2035through 100trillion won was chosen as the benchmark. The company limited the scope to the DS Division and decided to pay the full performance bonus, after tax, in its own shares.
The government and industry are concerned that the so-called demand to “distribute N% of operating profit” could spread across the industry. There is mention of the possibility that it could affect wage and collective bargaining negotiations in the automotive industry for 2026. Automobiles are the second-largest export item, and there are 1–3tier suppliers, numbering 5,000companies or more.
This agreement shows that an immediate strike was averted. However, concerns have been raised about the impact on supply chains and exports if similar demands spread across the industry. The government is monitoring the effects on industry and considering its response.
Sources: 뉴시스 경제
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