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Samsung Electronics' unionized workers voted to approve a bonus pay deal on Wednesday, ending a five-month dispute and averting an 18-day strike at the world's largest memory chip maker.
Balloting ran from May 22 through Wednesday morning, with 95.5% participation among the 65,593 eligible members across the two unions. The unions reported that 62,616 votes were cast and that nearly three-quarters — 73.7% — came out in support, according to the Korea Herald. The two sides signed the wage agreement later Wednesday.
The compensation structure anchors around two components for chip employees: a cash bonus capped at 50% of annual salary, plus a separate pool funded by 10.5% of the chip division's operating profit, distributed as company shares, according to Reuters. Those shares vest in three equal tranches — one immediately upon issuance, one after twelve months, and the last after twenty-four months. The profit-linked payouts kick in only if Samsung clears 200 trillion won in annual chip operating profit between 2026 and 2028, with a lower threshold of 100 trillion won per year applying from 2029 through 2035.
Samsung stock surged 6% on Wednesday.
