Yeo Myeong-gu (center left), head of HR at Samsung Electronics’ device solutions division, exchanges signed copies of the provisional agreement on wages with Choi Seung-ho, the president of the company’s largest labor union, after the two sides reach last-minute negotiations held at the Gyeonggi District Employment and Labor Office in Suwon on May 20, 2026. (pool photo)
Barely an hour before a planned strike at Samsung Electronics, management and labor reached a dramatic breakthrough on how to distribute bonuses based on historic earnings at the Korean chipmaker.After Korean President Lee Jae Myung targeted the company’s union with a remark about workers’ keeping “to an appropriate level” in advocacy for their interests, Korea’s labor minister helped the two sides reach a hard-fought agreement. The deal enables Samsung Electronics to dodge what promised to be the largest strike in the company’s history.Samsung management and labor sat down for last-ditch negotiations at 4:25 pm at the office of the Gyeonggi District Employment and Labor Office in Suwon. At 10:30 pm, after more than six hours of negotiations, they finally reached a tentative deal. The talks were personally brokered by Labor Minister Kim Young-hoon.The two sides agreed to have a total of 12% of profits paid out as a bonus to employees over a 10-year period. That rate includes a 1.5% overall performance incentive (OPI) and a 10.5% special performance payout for the semiconductor division (called Device Solutions, or DS for short).Labor and management updated the conditions for bonus payment, and the company agreed to drop the bonus cap (50% of yearly salary) at the union’s request.A more contentious request for workers to receive a fixed percentage of operating profits was dropped from the deal over concerns about its potential impact on other companies.The special performance bonus for the semiconductor division will be entirely paid in the form of post-tax company stock.The agreement also includes a pledge for Samsung to use some of its earnings to give back to society.“In the spirit of the agreement between labor and management, the employer will swiftly announce a plan for raising and operating funds to support the shared growth of our suppliers, contribute to local communities and ensure workplace safety,” the agreement said in a section about “cooperation for shared prosperity.”“We will be holding a vote among union members between May 22 and 27,” said Choi Seung-ho, the head of Samsung’s largest union.For the motion to pass, at least half the union’s 70,000-plus members will have to vote, and a majority of ballots must be cast in support of the motion.Assuming it is approved by the union, the deal will conclude a labor dispute that has lasted for more than five months, since last December.If the motion is voted down, labor and management will have to return to the negotiating table.“We will treat this as the starting line for forging a win-win relationship between management and labor. The company will faithfully implement the terms of the agreement,” said Yeo Myeong-gu, the head of HR for Samsung’s semiconductor division.After the two sides reached their tentative deal, the Blue House thanked labor and management “for making a noble decision for the sake of the Korean nation and people.”By Kwon Hyo-jung, staff reporter; Lee Jun-hee, staff reporter; Seo Young-ji, staff reporterPlease direct questions or comments to [english@hani.co.kr]
