Samsung Electronics and its largest labor union in South Korea have reached an agreement on wage increases for 2025. Employees will receive a 5.1% pay raise under the new deal. The National Samsung Electronics Union (NSEU) is one of the biggest labor unions in South Korea. It represents more than 36,000 workers, making up nearly 30% of the company’s domestic workforce. The union approved the agreement after a six-day voting process, which wrapped up on Wednesday, as reported by Reuters.
Samsung Electronics and Labor union wage deal was widely supported by members
The agreement was widely supported, with 87.7% of the 22,132 union members voting in favor. In addition to the salary increase, Samsung will provide workers with extra perks. These include points for purchasing Samsung products and 30 company shares. Samsung will also set up a joint labor-management task force to improve the performance-based pay system. A new policy will allow employees with three or more children to be rehired after retirement.
This agreement follows a long labor dispute, which included Samsung’s first-ever strike last year. The union demanded better wages and working conditions. While the company said production was unaffected, the strike marked quite a historic moment in Samsung’s labor relations. By making this deal, Samsung avoided more strikes. This is crucial as the company faces more competition, especially in AI chip production. For the uninitiated, Samsung is making all ends meet to ship upcoming Galaxy S26 series with Exynos 2600 chips.
“This wage agreement will be a turning point for greater harmony between labor and management,” Choi Wan-woo, vice president at Samsung Electronics, said, welcoming the agreement. “We will make a united effort to strengthen our competitiveness.”
Now that the negotiations are settled, Samsung can focus on its core business challenges. For what it’s worth, the threat of further strikes is no longer looming. That, for any business, ensures stability as it competes with other tech giants.
