Samsung strike called off as pay rise agreed

However there is bitterness at the differences in the level of the bonus with workers in the memory unit getting $400,000 and workers in the foundry business getting $110,00.

There is also resentment from other Samsung workers outside the semiconductor division e.g. consumer electronics, who are getting bonuses of $4000.

The way the agreement works is that all chip workers will receive a 6.2% pay rise and a regular cash bonus equal to 50% of their annual salary.

Samsung will also set aside 10.5% of its chip division’s operating profit for special bonuses, which will be paid in stock.

A third of the stocks will be sellable immediately, a third after one year and the remainder after two years.

Payouts are conditional on Samsung meeting profit milestones. The company must achieve more than $133 billion in annual operating profit from 2026 to 2028, and $67 billion annually from 2029 to 2035.