Photo : KBS
Samsung Electronics’ largest labor union has postponed its strike, set to begin on Thursday, after reaching an unprecedented deal with the company’s management.
The union notified its members Wednesday night that it would postpone its general strike, scheduled for Thursday through June 7, until further notice, and that it would submit its tentative agreement with management for ratification between May 23 and May 28.
In the tentative deal, the two sides agreed to set aside ten-point-five percent of an agreed-upon performance figure as bonuses for the device solutions(DS) unit, on top of Samsung’s existing excess-profit bonus program.
If the performance figure were operating profit, which the tech giant expects to reach around 300 trillion won this year, each employee would receive up to 540 million won in company shares.
Those in the memory division would receive an additional 50 million won from the existing profit-sharing program.
The DS bonuses will be handed out over the next ten years, so long as the company generates 200 trillion won in annual operating profit between 2026 and 2028 and 100 trillion won between 2029 and 2035.
Talks had collapsed earlier on Wednesday, prompting Minister of Employment and Labor Kim Young-hoon to step in to mediate, and the two sides reached a last-minute deal roughly an hour before the strike was set to begin.