Samsung Electronics Union Approves Wage Deal, Averting Strike

(CNA, Seoul, May 27) Samsung Electronics union members voted today to approve a preliminary wage deal, averting a strike that could have impacted global chip supplies and dragged down the South Korean economy. According to the union, nearly 74% of the 62,616 employees who participated in the vote supported the agreement. Previously, Samsung Electronics had been mired in a five-month internal dispute over performance bonuses for its AI chip business, which exacerbated tensions among employees. Labor and management reached a preliminary agreement just hours before the strike deadline on the 20th, following last-minute mediation by South Korea's Minister of Employment and Labor. However, a minority union consisting mainly of consumer electronics division employees filed for an injunction in court yesterday to stop the voting process, arguing that the agreement primarily favored employees in the semiconductor division. Under the terms of the formally approved agreement, Samsung's semiconductor division will implement a new 10-year special performance bonus system and provide an average wage increase of 6.2%.