Samsung Electronics’ labour union in South Korea has warned it will abandon current wage negotiations if a mediation proposal is not put forward within two hours, as talks with management remain deadlocked.
The dispute, which has been ongoing under a government-mediated process, has seen both sides fail to narrow differences despite marathon discussions. The union says it has already waited several hours for a formal mediation proposal.
According to union representative Choi Seung-ho, the company is holding firm on its offer to allocate 10% of operating profit to a performance-based bonus pool.
The union, however, is demanding a higher share of 15% of operating profit be committed to bonuses, the removal of a current cap that limits bonus payments to 50% of annual base salary, and guarantees that such changes remain permanent beyond this year.
Workers have also expressed frustration over what they describe as a widening pay gap with rival SK Hynix, a competitor that gained an edge in supplying high bandwidth memory chips used in artificial intelligence systems powering platforms like ChatGPT. SK Hynix
SK Hynix’s move last year to remove its bonus cap, resulting in payouts reportedly more than three times higher than Samsung’s, has helped drive a rise in union membership at Samsung.
The development comes as strong financial performance across the semiconductor industry is driven by rising demand linked to the global artificial intelligence boom. NVIDIA has emerged as a key customer driving demand for advanced chips, benefiting suppliers across the sector.
Samsung Electronics recently became only the second Asian company after TSMC to surpass a $1 trillion market valuation, underscoring the scale of growth in the chip industry even as labour tensions continue to mount.
Goodness Anunobi
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