Samsung Electronics and its labor union have reached a tentative agreement for a 5.1 percent wage increase, marking a potential resolution to prolonged negotiations. The deal, announced separately by both parties, includes a 3 percent rise in base salary and a 2.1 percent increase in bonuses.
Additionally, employees will receive 30 treasury shares and various perks, such as vouchers for company products. This agreement comes after 48 days of discussions that began on January 7, with the final decision resting on a union vote scheduled between February 28 and March 5.
The National Samsung Electronics Union (NSEU), which represents around 36,000 employees —approximately 30 percent of Samsung’s South Korean workforce — has been engaged in long-standing wage negotiations with the company.
Talks had failed to yield an agreement throughout the previous year, prompting the union to stage the first-ever strike in the company’s history. Although the strike did not disrupt production, the ongoing labor dispute has remained a source of tension for the tech giant.
As part of the new deal, Samsung and the NSEU have also agreed to establish a joint task force aimed at improving the company’s bonus system. Updates on these improvements will be shared every six months, ensuring transparency in the implementation of the revised wage structure.
The agreement is seen as a significant step toward stabilizing labor relations within the company, which has been facing intense competition in the semiconductor industry, particularly in AI-related chips.
A Samsung Electronics official expressed optimism about the agreement, emphasizing the importance of labor-management cooperation in maintaining business competitiveness. The resolution of wage negotiations is expected to help the company focus on its strategic goals while fostering a more harmonious work environment, Yonhap news agency report said.
Baburajan Kizhakedath
