Samsung Electronics and union reach an agreement, first ever

Tech

Published: 08 Aug. 2022, 18:40

Samsung Electronics and union reach an agreement, first ever

Unionized workers call on Samsung Electronics management to handle their requests before the National Assembly in Yeouido, western Seoul, on May 3. [YONHAP]

Samsung Electronics and its labor unions reached a tentative agreement over wages and holidays, marking the first time the company has struck a deal with labor groups.

Management and four unions settled for a 5 percent increase in base salaries for this year and a 4 percent rise for excellent performance. The four unions are: Samsung Electronics Office Workers' Labor Union; Samsung Electronics U.S. Labor Union; Samsung Electronics Labor Union; and National Samsung Electronics Labor Union.

They also agreed to add one additional day of paid holiday a year.

The two sides will work to set up a task force team dedicated to discussing and reforming present wage systems for senior workers.

The new labor contract will be signed on Aug. 10 at the company's semiconductor production site in Giheung, Gyeonggi.

That will be the first-ever wage agreement with unionized labor for the electronics maker. In previous years, it had negotiated with an internal labor-management council.

Reaching a consensus was not easy and took 31 rounds of negotiations.

In February, labor raised the possibility of a strike as it remained divided over wage increase. The labor groups demanded annual wages be raised by 10 million won ($7,654) for all employees and that 25 percent of annual operating profit be earmarked for bonuses, but it later bowed to the rate suggested by management.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]