Samsung faces strike from nearly 48,000 union workers
Source: Engadget
Background
Nearly 48,000 Samsung workers in South Korea—about 38 % of the company’s local workforce—are planning an 18‑day walkout starting May 21. The strike follows failed negotiations over worker bonuses.
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Union Demands
- Remove the bonus cap – The current cap limits bonuses to 50 % of an employee’s annual salary.
- Profit‑sharing – Allocate 15 % of Samsung’s annual operating profit to worker bonuses.
The union points to rival SK Hynix, whose workers received bonuses three times higher than Samsung’s last year.
Company Response
Samsung called the union’s terms “unacceptable,” stating that meeting the demands would “undermine the fundamental principles of company management.” The company emphasized its willingness to continue dialogue, saying it “will not give up on dialogue until the last moment” and that “there must be no strikes under any circumstances.”
Financial Context
- Samsung is the world’s largest DRAM maker by revenue.
- Q1 2026 operating profit: KRW 53.7 trillion (≈ $35.63 billion) from the memory division, accounting for most of the company’s total operating profit of KRW 57.2 trillion (≈ $37.96 billion).
Legal Situation
A court injunction requires 7,087 workers to report to work during the strike to keep certain production facilities operational. The injunction could be adjusted if negotiations progress.
South Korean labor commissioner Park Soo‑keun indicated that the government is prepared to mediate if the parties return to the negotiating table.
Potential Impact
Most striking workers belong to Samsung’s memory division, the company’s biggest profit generator. A prolonged walkout could disrupt production and affect the company’s financial performance, especially given the sizable bonuses at stake.