Samsung union suspends planned strike after new round of negotiations | Infinium-tech

Samsung was facing the largest strike in its history at its Device Solutions business, due to it posting record sales but not sharing much of the profits with its employees. However, now, following talks led by South Korea’s Minister of Labor and Employment, the labor union has suspended its planned 18-day strike. These negotiations resulted in a temporary agreement.

Now all members of the union will vote from May 22 to May 27 on whether to accept the proposed temporary agreement or not. Samsung will allocate a special bonus equal to 10.5% of operating profits to its chip division, and accede to the union’s demands to link bonuses to operating profits and eliminate the bonus cap. In addition to the above special bonuses, the Chip Division will also receive 40% of the total bonus pool.

The union had demanded a bonus equal to 15% of Samsung’s operating profit, removal of the bonus payment cap as well as a formal bonus structure.

South Korean Prime Minister Kim Min-seok earlier estimated that direct losses under the planned 18-day strike would amount to 1 trillion Korean won (about $660 million). Samsung accounts for 22.8% of Korea’s total exports and 26% of its market capitalization, so whatever happens to Samsung basically happens to the country.

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