Samsung chip workers lost bonuses up to $428,000, and colleagues felt underpaid

Short news from Samsung

*Samsung Electronics* — the world’s largest memory chip manufacturer, but that does not mean all its employees rely solely on the chip market. Recently the company’s union secured higher bonuses for semiconductor line workers, which has caused dissatisfaction among staff in other divisions.

1. How bonuses are distributed
- Bonus for operating profit

The entire annual bonus pool is formed from the company’s operating profit. It mainly goes to those who work on chip production: up to 40 % of the total fund is allocated to them. The remaining 60 % is distributed among other Samsung Electronics structures.

- Size gap

According to Bloomberg, the difference in yearly bonuses can reach a 100‑fold disparity. If chip producers receive more than $400,000, employees working on TVs and other products may get only $4,000.

- New terms for loss‑making divisions

Management did not want to raise bonuses in areas where the company loses money. The union managed to increase the cap on annual bonuses for such staff from the usual 50 % of salary to 60 %. However, this change will take effect only next year.

2. Limits and additional payments
- Overall limit

As *Chosun Daily* reports, the bonus limit remains at 50 % for all employees, but an additional “stimulating” component tied to operating profit is added.

- Threshold values

- Until 2029: if the semiconductor division’s operating profit ≥ $1.3 million.
- From 2029 to 2035: additional payments are possible if profit exceeds $660 million.

- Payment form

Most bonuses are paid in Samsung shares (up to 10.5 % of annual operating profit).
- One third can be sold immediately.
- A third is sold after one year, and the remainder after two years.
The remaining 1.5 % of the bonus is paid in cash.

3. What this means for different divisions
- Bonus above base salary

Because shares can be sold, annual bonuses may exceed basic pay even for employees in loss‑making areas.

- Division examples

- *LSI* (processor development) and *Foundry* (contract manufacturing): up to $122,000.
- Memory producers: about $428,000 when projected profit is achieved.
- “Intermediate” divisions average $336,000.

4. Contractor payment possibility
The agreement with the union allows bonuses to be paid to third‑party companies and Samsung Electronics partners if their own unions request such an option. This opens the door for workers in related industries to demand similar increases.

Conclusion:

Samsung’s union achieved a significant increase in bonuses for semiconductor line staff, but this created an imbalance in bonus distribution. New rules provide additional payments when certain financial targets are met and allow even employees from loss‑making divisions to receive higher bonuses through company shares. The question now is how the other areas will react to these changes.