Samsung unions voted in favor of deal that will give chip workers $400,000 in bonuses

Source: Engadget

Chung Sung-jun / Getty Images

Deal Overview

Samsung’s two largest unions have voted in favor of a wage agreement that will give the company’s chip workers up to $400,000 in bonuses this year. According to Yonhap News, 73.7 % of the two unions’ 62,616 members approved the deal during a six‑day voting period that started on May 22.

While the union hasn’t released formal numbers for the bonuses, Samsung is expected to generate up to KRW 300 trillion in operating profit this year, which could lead to payouts of up to KRW 600 million (≈ $400,000) for each of the 28,000 employees in the chip division.

• Bloomberg estimates that Samsung will distribute KRW 40 trillion (≈ $26.6 billion) for the payouts, averaging around $340,000 per employee.
• The bonuses will be paid in company stock over at least 10 years, contingent on the memory division achieving:
  • KRW 200 trillion ($133 billion) in annual profit from 2026‑2028
  • KRW 100 trillion ($66 billion) in annual profit from 2029‑2035

Union Actions and Government Involvement

Samsung’s largest union, representing about 48,000 workers (most in the chip division), threatened an 18‑day strike starting May 21 after failing to reach an agreement on bonuses. The potential walkout could have impacted not only Samsung but also South Korea’s economy, as the company accounts for 12.5 % of the nation’s GDP. South Korean Prime Minister Kim Min‑seok estimated direct losses from the strike could reach KRW 1 trillion (≈ $669 million).

The parties reached a deal an hour before the strike was set to begin, with mediation from South Korean Labor Minister Kim Young‑hoon.

Bonus Structure and Internal Tension

Despite the majority vote, Bloomberg reported that the bonus structure is creating resentment among colleagues. Key points of the agreement include:

• Abolition of workers’ bonus caps (a demand of the unions)
• 10.5 % of Samsung’s annual operating profits earmarked for payouts
• 40 % of the total bonus pool allocated to chip‑division workers
• Remaining divisions (smartphone, TV, home appliances) share the rest, with bonuses around KRW 6 million (≈ $4,000) per employee

Voting Breakdown

• Within Samsung’s largest union, 80 % voted for the wage agreement.
• In the smaller union representing more non‑chip workers, only 21 % voted in favor.

The disparity has led to tension between chip workers, who receive substantially larger bonuses, and employees in other divisions.