Samsung Electronics and its labor union have reached a tentative wage agreement for 2023 and 2024 after 10 months of negotiations. The agreement still requires approval through an internal union vote, while negotiations for 2025 wages remain pending.
According to South Korean outlets ETNews and The Elec, Samsung's management and labor union recently agreed on a 5.1% wage increase.
The agreement encompasses paid leave for union members' training sessions, KRW2 million(US$1,500) redeemable points for Samsung products for all employees, and additional vacation days for senior staff—measures originally outlined in Samsung's March 2024 plan.
Labor tensions escalated when disputes over the 2023 Overall Performance Incentives (OPI) and wage adjustments drove Samsung's union membership to above 30,000 in 2024, leading to union-led strikes targeting semiconductor production beginning in July.
Korea JoongAng Daily reports that the OPI is awarded in January if a division exceeds its profit target, with 20% of the surplus allocated to provide employees with up to 50% of their annual salary.
On August 1, 2024, the union suspended its strike, shifting to guerrilla-style tactics and other methods to advance wage negotiations.
Following the tentative agreement, the Samsung Electronics Labor Union has scheduled a member vote from November 14 to 21.
The union has expressed optimism about favorable results in both collective bargaining and the upcoming 2025 wage discussions.
Samsung has characterized the agreement as an opportunity for labor-management reconciliation, stating its intention to focus on strengthening its competitive edge.
