Samsung Electronics Reaches Tentative Deal With Union Over Bonuses

Samsung Electronics reached a tentative agreement with its labor union this week, avoiding a potential strike by nearly 48,000 workers. The deal centers on bonus payments linked to operating profits from the company's semiconductor operations.

The union had sought to allocate 15 percent of operating profit to bonuses for all workers. Executives agreed to remove a cap on bonuses and tie them directly to operating profits, while setting aside about 10.5 percent of operating profit for special bonuses in the chip division.

The union stated that workers in the semiconductor unit supply memory chips to major technology firms. It noted that the previous bonus structure created divisions between different business units and prompted some employees to leave the company.

Samsung, the world's largest memory chip maker, has reported record profits in recent months amid a global shortage of memory chips. The union said the agreement institutionalizes the bonus formula for a decade and bases it on a transparent calculation.

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