The Samsung union set a condition for ending the general strike that could lead to daily losses of up to $680 million.

Negotiations over bonuses at Samsung: mediator and potential strike

This week a mediator – the Central Labor Relations Commission, part of South Korea’s Ministry of Employment and Labor – entered into dialogue between Samsung Electronics’ management and its employees’ union.

The union leader said his colleagues are ready to forego a general strike if a more transparent bonus distribution system is implemented.

What the union demands
* A 7 % increase in base salary.
* Profit sharing – up to 15 % of the company’s annual operating profit as bonuses.

Currently the maximum bonus amount is limited to 50 % of the annual salary. But thanks to Samsung’s revenue growth driven by rapid AI development, union representatives consider this cap unfair.

The union represents 70,000 employees – more than half of the company’s workforce.

Possible consequences
If the current round of negotiations fails to achieve the desired outcome, employees could launch a general strike from May 21 to June 7.
The union estimates Samsung’s losses at $680 million per day of stoppage, excluding additional costs for restoring chip‑production equipment.

When talks on bonus increases began at the end of last year, no one in the union anticipated that it might lead to a strike.

Key figures and context
* Union leader – Choi Seung‑ho.
He criticizes Samsung management’s lack of transparency regarding bonuses, salaries, and career advancement.
* In 2023 the company’s semiconductor sector posted losses; regular employees did not receive annual bonuses, while their managers remained unscathed.
* Because of pay disparities, more than 400 union members have moved to work at SK hynix over the past four months.

Choi stresses that Samsung Union does not seek alignment with political parties – unlike some other industry groups. He also supports the development of the national semiconductor industry and recalls how his parents cried with joy when he was hired by Samsung in 2017. For him, Samsung remains an “excellent company.”