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Samsung Strike Suspended as Union Votes on Tentative Pay and Bonus Deal

Government mediation paused an 18-day walkout leaving legal and implementation questions about a conditional stock‑based chip bonus.

Overview

  • Union and management reached a tentative agreement in last‑minute talks led by Labour Minister Kim Young‑hoon, and the union paused a planned 18‑day strike pending a member ratification vote.
  • The deal reported a 6.2% base wage increase and a new semiconductor special bonus that would earmark roughly 10.5% of chip‑division operating profit payable mostly in company stock if high profit targets are met.
  • Union members will vote on the tentative pact in a scheduled window from May 22 to May 27, and the agreement will collapse back into a strike threat if the membership rejects it.
  • A Suwon court injunction requiring 7,087 essential staff to work during any industrial action remains in force, and shareholders’ groups have vowed legal challenges saying profit‑linked payouts lack proper shareholder approval.
  • Markets rallied on the suspension — Samsung shares jumped about 6–8% — and officials warned that a full strike could have damaged South Korea’s economy and the global chip supply by forcing scrapping of in‑process wafers.