After Strike Threat, Samsung Inks New Wage Agreement with Labor Union

Earlier this week, Samsung and its labor union reached a tentative agreement on a new performance-based bonus system, which helped avoid a general strike. The agreement has now been finalized with strong approval from union members in a vote. Dubbed the 2026 Wage Agreement, both sides officially signed it today (May 27).

Strong union members’ support leads to the signing of the Samsung Labor agreement

In a Newsroom post, Samsung announced the formalization of the 2026 Wage Agreement at its The UniverSE in Giheung, Yongin, Gyeonggi Province. Union members approved the agreement with 95.5% of votes cast and 73.7% support after voting from 2:00 PM on May 22 to 10:00 AM on May 27.

“Starting with the conclusion of this wage agreement, labor and management will work together with one mind to strengthen global competitiveness,” said Samsung Electronics Vice President Yeo Myung-gu. “I thank the labor union and all employees for engaging in negotiations with sincerity and never letting go of the thread of dialogue until the end.”

If you are unaware, the wage talks began last year over performance-based bonuses from Samsung’s semiconductor business. Both sides held several rounds of negotiations but failed to reach an agreement until South Korea’s labor minister personally attended the mediation session. This came on the night of May 20, a day before the planned general strike.

Speaking of contract terms, reports suggest that Samsung introduced a special semiconductor performance bonus system, with no upper limit. The bonus pool accounts for 10.5% of business performance earnings. The company will distribute bonuses in its stock over at least 10 years. It is worth mentioning that the firm will pay an additional 1.5% in cash.

Furthermore, the chip division as a whole will get 40% of the total bonus pool. Individual business units attract the reamining 60%. Based on profit forecasts, payouts could reach up to 600 million won per employee in the chip division this year.