A bitter internal conflict has erupted within Samsung, as employees clash over staggering bonuses, some reaching over $400,000, leading to a legal challenge aimed at overturning a controversial pay deal.A union representing Samsung’s consumer electronics workers initiated legal action on Tuesday, seeking to block a company-wide vote on a labor agreement. This deal, brokered by the South Korean government after an 18-day strike involving 48,000 workers, awards substantial payouts to employees in Samsung’s lucrative memory chip business, where profits have surged due to the global artificial intelligence boom.The logo of Samsung Electronics is seen on a gate at the company's headquarters in Suwon on May 22 (AFP/Getty)Some workers in this division are reportedly set to receive bonuses totaling roughly $416,000 this year. However, employees in Samsung’s smartphone, TV, and appliance units contend they have been significantly shortchanged.The Samsung Electronics Co Union (SECU), representing approximately 13,000 workers primarily outside the chip business, claims it was excluded from the final negotiations and denied the opportunity to vote on the agreement. The union is now suing to halt the vote before its scheduled conclusion on Wednesday.This dispute has laid bare deep divisions within one of the world’s largest tech companies, as workers feud over the distribution of Samsung’s AI-driven wealth. Negotiations were led by the Samsung Electronics Labor Union (SELU), the company’s largest union, which reported that over 90% of eligible members had already cast ballots by Tuesday. The deal is widely expected to pass despite growing opposition.The turmoil has unsettled investors and ignited a broader debate in South Korea over the equitable distribution of profits from the AI boom (AP)Another group, the National Samsung Electronics Union (NSEU), also condemned the agreement, with some members actively campaigning against it. "We hope to pull off a miracle," one union official stated, expressing hope that workers would reject the deal and force a return to negotiations.Get a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTEven some employees within Samsung’s chip operations are reportedly angered by the way payouts were allocated across divisions. While workers in the foundry and logic chip businesses will receive hefty bonuses, these are nowhere near the sums going to memory chip employees benefiting from the AI boom. Meanwhile, workers in Samsung’s consumer electronics arms anticipate far smaller payouts.The turmoil has unsettled investors and ignited a broader debate in South Korea over the equitable distribution of profits from the AI boom. Samsung, which accounts for roughly a quarter of South Korea’s exports, has seen its stock climb 8% since the deal’s announcement last week. Yet, rival SK Hynix, another AI chip powerhouse, has surged an even greater 18%, intensifying pressure on Samsung amid escalating internal tensions.
Samsung staff left furious after select workers set to pocket $416,000 in bonuses
A union representing Samsung’s consumer electronics workers initiated legal action on Tuesday, seeking to block a company-wide vote on a labor agreement













