Labor and Management Agree to 4.1% Base Pay Increase
Samsung E&A’s labor union, &U, held a wage agreement signing ceremony with management on May 19 at the GEC building in Gangdong-gu, Seoul, concluding the 2026 wage negotiations. (Photo = Samsung E&A Labor Union)
Samsung E&A labor and management have finalized their 2026 wage negotiations, laying the groundwork for practical improvements in employee treatment and the establishment of a future compensation system. The two sides reached a swift agreement on a negotiation proposal that includes a 4.1% increase in base pay and a significant expansion of welfare benefits.
Samsung E&A’s labor union, &U, announced that it held a signing ceremony for the 2026 wage agreement with management on May 19 at the GEC building in Gangdong-gu, Seoul. Attending the event were bargaining committee members from both labor and management, including union chairman Kim Bong-jun and HR team head Cho Dong-man, who signed the agreement.
The core of the agreement is the application of a 4.1% common increase rate, along with adjustments to the Pay-Zone, the wage range for staff-level employees and managerial employees. In addition, the deal seeks a qualitative improvement in working conditions by including the target incentive, or TAI, in average wages and reducing the standard hours used to calculate fixed overtime allowances. It also includes expanded childbirth-related congratulatory and condolence payments, which is interpreted as reflecting consideration for providing practical support to employees’ household finances.
The labor union began with a survey of union members in December last year and, after about two months of preparation, delivered its wage negotiation demands to management in early February this year. In particular, it organized a total of 27 agenda items and brought them to the bargaining table based on the joint demands of the Samsung Group Labor Union Solidarity under the Federation of Korean Metalworkers’ Trade Unions of the Federation of Korean Trade Unions.
Since February, the two sides held a total of 13 rounds of formal negotiations and several intensive bargaining sessions to narrow their differences. After drawing up a tentative agreement on May 13, the proposal was finally confirmed with a high approval rate of 95.1% in a general vote of union members conducted through May 15.
Union Chairman Kim Bong-jun said the agreement was meaningful in that it achieved practical improvements in treatment for union members despite difficult external conditions. Kim said, “the result laid the foundation for a future compensation system,” adding, “I also express my gratitude to the company for engaging in sincere dialogue.”
Jung Min-hee
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