Negotiations between Samsung’s Memory division employees and management are picking up pace at a tense moment for the company, as memory chip prices climb and profits remain under close watch. The dispute first drew major attention in April, when workers rallied publicly and pushed for a bonus equal to 15% of the semiconductor unit’s operating profit. Union members also warned that if no agreement was reached, they could launch an 18-day general strike beginning May 21.
Now, the talks appear to be moving toward a partial breakthrough. Reports citing union members say Samsung’s management has agreed to a 10% bonus offer and, crucially, has shown willingness to put the bonus structure in writing for the next three years before turning it into a formal, institutionalized system.
The biggest shift in the latest discussions is not just the percentage number, but the structure behind it. Earlier negotiations reportedly came close to a higher figure—around 13% of operating profit—yet stalled when management resisted formally codifying the bonus arrangement. Workers have argued that without a written, standardized system, the Memory division could be forced to renegotiate again and again, leaving payouts uncertain and inconsistent across business units.
Union demands extend beyond a single payout. Along with the 15% bonus request, workers have been calling for annual wage increases and the removal of a bonus cap. They also contend that Samsung, despite its scale and industry position, has lagged behind SK hynix in how generously it rewards employees—claiming Samsung’s bonus level has been far lower in relative terms. From the union’s perspective, a larger market leader should not be offering smaller incentives, especially during periods when the semiconductor cycle turns favorable.
Samsung’s counterproposal has centered on a 10% operating profit-based bonus along with a 6.2% pay increase. The newest development—management agreeing to codify the bonus for three years and then institutionalize it—could be aimed at addressing one of labor’s key concerns: predictability and equal application across divisions, so compensation isn’t left to repeated bargaining battles.
Even so, the situation remains volatile. Union members have reportedly criticized the proposal as an attempt to divide workers and are encouraging participation in the planned strike unless a better deal is reached. The gap between 10% and 15% may sound modest, but at Samsung’s scale it becomes enormous. Estimates in the report suggest that paying 10% of operating profits could translate to roughly 35 trillion Korean won in bonuses, a figure that would exceed the 20 trillion won paid by SK hynix.
Financial markets are also watching closely. Several brokerages reportedly lowered their Samsung share price targets on May 7, citing concerns that a large bonus payout could weigh on operating profit. Meanwhile, the potential cost of a full-length strike is significant: estimates referenced by the Financial Times suggest direct losses could range from $6.9 billion to $11.7 billion if the walkout runs its full course.
For now, Samsung’s willingness to formalize the bonus structure marks a meaningful step forward—but with the strike date approaching and workers still pressing for 15%, the next round of talks could determine whether the company avoids a major disruption in its crucial memory chip business.
