Samsung Reaches Tentative Deal With Semiconductor Workers on Bonuses

Samsung has reached a tentative agreement with semiconductor employees who had threatened to strike over bonus caps. The deal would make some workers eligible for average annual bonuses of $340,000. The proposed 18-day strike centered on Samsung's bonus structure for employees in the semiconductor division.

It followed a rise in possible bonuses at SK Hynix, another South Korean chipmaker benefiting from demand for AI components.

Under the terms, all chip workers will receive 50 percent of their annual salary as a regular cash bonus. 5 percent of its annual operating profits for stock-based bonuses to semiconductor employees. The final distribution allocates 40 percent of the stock bonus pool across the entire semiconductor division, including loss-making units.

The remaining 60 percent is reserved for the memory chip unit. A memory chip worker earning a base salary of around $50,000 could now be eligible for a total bonus of $416,000, according to Reuters. The majority of the bonus will be paid in stock and is conditional on the company meeting profit milestones.

Samsung recently reached a $1 trillion valuation and is South Korea's largest company. The company accounts for around a quarter of the country's exports. Its most recent earnings report showed an eightfold increase in profits, driven largely by memory chip sales. The deal still requires approval by union members. A union leader told Reuters that approval is expected.