Samsung Electronics' unionized workers in South Korea voted on Wednesday to approve a tentative wage and compensation agreement. The government-mediated deal formally closes a process that narrowly survived an injunction filing from a smaller non-chip union.
By approving the agreement, the company's largest union has averted a strike that threatened to disrupt global chip supplies and damage the South Korean economy, particularly amid shortages in the memory chip sector.
Driven by booming demand for AI chips, the deal includes a substantial bonus package. More than 60% of the tech giant's workforce is eligible for bonuses of about $370,000 this year, with chip workers receiving an average bonus of approximately $340,000.
The agreement utilizes a 10.5%-of-profit bonus formula, marking only the second written profit-share agreement at a major Korean firm. While the deal guarantees hefty bonuses for employees in the top-performing chip unit, other workers have reported feeling left out.