Samsung union workers in South Korea approve pay deal, averting strike

SEOUL – Samsung Electronics' unionized workers in South Korea have voted to approve a tentative wage deal, the union announced May 27. This decision averts a strike that could have disrupted global chip supplies and impacted the South Korean economy.

Nearly 74% of the 62,616 workers who cast ballots backed the agreement. The approval came after a contentious five-month dispute over performance bonuses linked to the company's successful AI chip business. This issue had created significant divisions among the workforce.

Labor and management initially reached a tentative agreement on May 20. South Korea's Labour Minister mediated the last-minute talks, preventing a walkout scheduled for that day. However, a minority union representing consumer electronics workers attempted to block the vote in court on May 26, arguing the deal primarily benefited their colleagues in the chip divisions.

The ratified agreement introduces a new 10-year special performance bonus system for Samsung's semiconductor division. It also includes an average wage hike of 6.2%.

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Nearly 74 per cent of the 62,616 workers who cast ballots backed the deal