Samsung Electronics Reaches Tentative Labor Agreement; 70,000 Union Members to Vote

Samsung Electronics and its labor union reached a tentative wage agreement late on the 20th, with the company agreeing to establish a new special performance bonus for the semiconductor division. Approximately 70,000 union members will begin online voting this afternoon, which will continue until May 27. According to AFP, the global artificial intelligence (AI) boom has significantly boosted Samsung Electronics' chip business. However, due to dissatisfaction with wage and performance bonus schemes, as well as repeated breakdowns in labor negotiations, about 50,000 members of the Samsung Electronics labor union were originally scheduled to launch an 18-day strike starting on the 21st, drawing significant attention from South Korean authorities. Mediated by the South Korean government, Samsung Electronics' labor and management reached a tentative agreement late on the 20th, and the strike has been suspended. According to the agreement, employees in the Device Solutions division of the semiconductor business are expected to receive performance bonuses of up to 600 million won this year. Lawyers for both Samsung labor and management told AFP that the voting, originally scheduled to start tomorrow, would be moved up to this afternoon. According to union documents obtained by AFP, the voting will be conducted online and will continue until May 27. A lawyer for the Samsung labor union pointed out that about 70,000 members are eligible to vote, and if the turnout exceeds 50% and a majority of voters express approval, this labor agreement will be 'automatically approved.'