Labor unions representing workers at chipmaker Samsung Electronics have formally approved a new wage agreement, successfully averting an unprecedented general strike in South Korea, according to electronic voting results finalized today.
The landmark deal, which passed with a 73.7% majority vote, features substantial annual performance bonuses directly tied to the surging profits generated by artificial intelligence technology. Samsung management and the union confederation had reached a preliminary compromise last week to prevent a industry-wide shutdown, establishing individual worker bonuses of up to 343,000 euros this year for 78,000 employees within the crucial semiconductor division.
The electronic ballot closed strictly at 10:00 AM local time, following a massive joint voter turnout that had already reached 92.4% by Tuesday afternoon. Workers had initially demanded the complete elimination of the current performance bonus cap—which was previously restricted to 50% of their annual salary—proposing instead a structural system that reserves 15% of total corporate operating profits for employee incentives.
The finalized preliminary agreement introduces a specialized bonus for the Device Solutions division, which manages the semiconductor business, equivalent to 10.5% of the company’s performance and notably free of any maximum payment ceiling.
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Under these metrics, employees within the division stand to receive between 210 million and 600 million won (approximately 120,000 to 343,000 euros) in bonuses, South Korean public news agency Yonhap reported.
However, industrial tensions persist within the tech giant as a separate union—representing mostly workers from the mobile phones, televisions, and home appliances divisions—filed an injunction on Tuesday to suspend the ballot, claiming they were unfairly excluded from the negotiation process.
On May 14, the South Korean government had issued an urgent plea for a swift resolution to the labor dispute at Samsung Electronics, warning that a strike could severely jeopardize the country’s broader economic health. South Korean Finance Minister Koo Yun-cheol emphasized in a statement released via Yonhap that a massive labor walkout posed significant systemic risks to national economic growth, export stability, and local financial markets.
According to local news reports, Minister Koo held emergency meetings with top financial authorities to evaluate the potential macroeconomic fallout of a production freeze amid booming global demand for AI-enabling microchips.
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Union leader Choi Seung-ho had previously warned that a 18-day disruption to production lines would inflict a financial blow to Samsung approaching 18 trillion won (10.4 billion euros). Market analysts reinforced the gravity of the situation, estimating that the total losses of a general walkout to the South Korean economy could easily surpass 40 trillion won (22.7 billion euros).
