Samsung Electronics’ unionized workers in South Korea voted in March 2026 to approve a strike plan after negotiations over wages and bonuses stalled. The union demanded a 7% wage increase and reforms to Samsung’s bonus structure, arguing workers were falling behind competitors in the semiconductor sector despite rising profits driven by AI chip demand.
According to the article originally published in Reuters, union officials declared 93% of the 66,019 participating workers approved the strike plan after negotiations with management over bonuses and compensation reforms failed.
The dispute centers on workers’ demands to remove Samsung’s existing bonus cap and introduce a profit-linked compensation system similar to one recently adopted by rival chipmaker SK Hynix. Union representatives argue that Samsung employees are falling behind industry competitors despite the company’s strong performance in the semiconductor market, particularly amid rising demand for artificial intelligence and data center technologies.
Samsung management stated that eliminating the current bonus limits could affect long-term investment capacity in a capital-intensive sector. However, workers maintain that rising profits and increased global demand justify higher compensation and more equitable distribution of company earnings.
The strike reflects broader shifts in South Korea’s electronics sector, where organized labor has gained greater visibility and influence in recent years.
The original article first appeared on Reuters, and was written by Hyunjoo Jin.
