Union to Hold Ratification Vote on May 22 to 27 Samsung Electronics Labor and Management Reach Dramatic Agreement on the Eve of General Strike, Averting Crisis
Samsung Electronics’ Pyeongtaek campus (provided by Samsung Electronics)
Samsung Electronics’ labor and management reached a tentative wage agreement just one day before the announced general strike, dramatically averting a strike crisis. The agreement is understood as the result of both sides stepping back in the name of mutual benefit, amid growing concerns over the weakening competitiveness of the semiconductor industry and the damage such a dispute could inflict on the national economy.
Samsung Electronics’ labor and management formally signed the tentative 2026 wage agreement at around 10:40 p.m. on May 20 at the Gyeonggi Regional Employment and Labor Office of the Ministry of Employment and Labor, giving the two sides a chance to finally draw a line under a five-month-long standoff.
The performance bonus system, the central issue in the dispute, was resolved through a mediated compromise combining a common distribution ratio for bonuses with a differentiated payment scheme by business division. Management explained that while maintaining the principle that performance deserves reward, it had partially accommodated union demands to arrive at the best possible solution. The union, for its part, apologized to the public for the concern caused by the internal conflict and expressed gratitude to the government and union members for their efforts.
The Joint Struggle Committee of Samsung Electronics’ union announced immediately after the tentative agreement was reached that the general strike directive scheduled to begin on May 21 would be suspended until further notice. The union plans to hold a ratification vote among members from May 22 to 27 to determine whether the tentative agreement will be formally approved.
The government and the business community welcomed the agreement. Minister of Employment and Labor Kim Young-hoon commended labor and management for reaching an agreement through autonomous negotiations, while the Presidential Office also welcomed the outcome as a magnanimous decision made for the nation and its people. With the labor dispute — which had grown tense enough for Samsung Electronics Chairman Lee Jae-yong to personally bow his head in apology — now seemingly resolved, Samsung Electronics is expected to accelerate its return to normal management operations in pursuit of an overwhelming lead in the semiconductor sector.
Meanwhile, late on May 20, Samsung Electronics issued a statement announcing that labor and management had reached a tentative agreement on the “Wages and Collective Agreement,” adding: “The fact that we were able to reach an agreement, albeit belatedly, was made possible by the unwavering support of the public, shareholders, and customers, the dedicated mediation efforts of the government, and the employees who quietly stood by their posts. We sincerely express our deepest gratitude, and at the same time, we offer our profound apologies for the concern we have caused.”
The company further pledged: “We will humbly work to build a more mature and constructive labor-management relationship so that this kind of situation never recurs. We will do our utmost to contribute further to the national economy by fulfilling the essential roles and responsibilities of a company.”
Hur Sung-soo
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