Samsung's labor union threatened an 18-day strike on Thursday if the company failed to meet its demands. The strike was called off at the last minute after Samsung agreed to meet several demands. South Korean media reported that Samsung has agreed to pay KRW 40 trillion (~RM 105 billion) in bonuses to semiconductor division employees. Of this amount, 40% will be given to semiconductor business employees with the rest for other businesses within Samsung,
Samsung has around 28,000 employees in the semiconductor division and this means that on average they will receive a bonus of KRW 513 million (~RM 1.3 million) each. The bonus consists of 10.5% of annual profits in the form of shares. and another 1.5% in cash. The bonus will continue for 10 years if the company meets the set targets. Employees can sell 1/3 of the shares they receive immediately and the rest in stages over the next two years. Union members voted yesterday to either accept or reject the company's offer.
Driven by strong demand for memory chips from the artificial intelligence sector, Samsung has seen its profits surge more than 750% and its market value hit $1.2 trillion in the past two weeks. Samsung could face losses of 30 trillion won (~RM 80 billion) if the 18-day strike continues.
Samsung's union is calling the strike in protest at bonuses they receive that are three times lower than those of employees at SK Hynix, which is also one of the world's largest RAM makers.
