The majority of Samsung Electronics’ (KS:005930) union members on Wednesday cast their votes in favor of a tentative wage deal, thereby averting a widespread strike that had posed a threat to global chip supply chains and South Korea’s economy.
According to the union, approximately 74% of those who participated in the vote endorsed the agreement. This effectively halted plans for an 18-day work stoppage involving around 48,000 employees, with a significant portion of them being employed in Samsung’s semiconductor division.
Shares of Samsung, listed on the Seoul stock exchange, surged by 8% to reach a record high of 323,000 won as of 04:51.
The agreement, brokered by the government last week, emerged from intensive negotiations concerning bonus structures and profit-sharing arrangements, driven by the surging demand for memory chips essential for artificial intelligence applications.
Under the terms of the ratified agreement, Samsung will implement a new 10-year bonus system for its semiconductor division employees, specifically tied to performance outcomes, alongside a commitment to a general salary increase averaging 6.2%.
However, some factions within the union opposed the deal and initiated legal action to challenge the voting process.
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