Samsung Electronics management and the company's labor union reached a provisional agreement on profit-sharing terms to avoid a large-scale strike [1, 2].
The deal prevents a potential shutdown of production lines at one of the world's largest chipmakers, ensuring stability for global semiconductor supply chains.
According to the agreement, profit-sharing will be set at 12% of operating profit [1]. The terms also specify that 40% of the total bonus pool will be allocated specifically to the semiconductor division [1]. Furthermore, the company will remove the existing cap on bonus amounts [1].
The agreement was reached approximately one hour before a total strike had been scheduled to begin on May 21, 2024 [1, 2]. While some reports indicate the strike was fully withdrawn, other sources said the action was put on hold or postponed [1, 2].
Union members are scheduled to vote on the provisional agreement between May 23 and May 28, 2024 [2]. The resolution follows a period of dispute regarding the ratios used to calculate profit-sharing among different divisions of the company [1].
Management and union leaders negotiated the terms to resolve these grievances and prevent the disruption of operations [1]. The final outcome of the deal depends on the upcoming membership vote [2].
“Profit-sharing will be 12% of operating profit”
This agreement signals a priority for Samsung to maintain operational continuity in its semiconductor business, which is critical for the global AI and electronics markets. By removing bonus caps and earmarking a significant portion of funds for the chip division, the company is addressing specific labor grievances to avoid the high cost of a total production halt.
