Samsung's unionised workers in South Korea approve pay deal


Choi Seung-ho, head of Samsung Electronics union, Yeo Myung-koo, head of the People Team under Samsung’s Device Solutions division and the company’s chief management negotiator, and Labour Minister Kim Young-hoon pose for photographs after reaching tentative pay deal in Suwon, South Korea, May 20, 2026. Yonhap/via REUTERS

SEOUL, May 27 (Reuters) - ⁠Samsung Electronics' unionised workers in South Korea ⁠voted to approve a tentative wage deal, ‌the union said on Wednesday, averting a strike that threatened to rattle global chip supplies and damage the South ​Korean economy.

Nearly 74% of the 62,616 ⁠workers who cast ⁠ballots backed the deal, the union said.

The approval came ⁠after ‌a bitter five-month dispute over performance bonuses tied to the company's booming AI ⁠chip business that has created a deep ​division among ‌workers at the tech conglomerate.

Labour and management ⁠had initially ​reached a tentative agreement last Wednesday following last-minute mediation by South Korea's Labour Minister, just hours ⁠before unionised workers were scheduled to ​walk off the job.

But a minority union representing the giant's consumer electronics workers said on Tuesday it ⁠has asked a South Korean court to block a vote on a pay deal that primarily benefits their colleagues in the company's chip ​divisions.

Under the terms of the ⁠ratified agreement, Samsung will implement a new 10-year special ​performance bonus system for ‌its semiconductor division, alongside an ​average 6.2% wage hike.

(Reporting by Hyunjoo Jin and Heejin Kim Editing by Ed Davies)

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