Samsung Electronics Tentative Wage Agreement Sees 92% Turnout... Approval Likely

Voting Closes at 10 a.m. on May 27

New Performance Bonus for Semiconductors and Changes to OPI Criteria

Opposition and Injunction Led by DX Division Remain Uncertainties

As the vote on the provisional wage negotiation agreement at Samsung Electronics enters its final stage, expectations are rising for its approval. Observers believe there is a strong likelihood that the majority of votes from the Device Solutions (DS·semiconductor) division, which makes up a large portion of the union membership, will lean toward passing the agreement.

View of Samsung Electronics headquarters in Suwon, Gyeonggi-do. Photo by Yonhap News

According to industry sources on May 26, as of 5 p.m. on the fifth day of voting, the combined turnout rate for the Samsung Group Super Enterprise Union Samsung Electronics Branch (Super Enterprise Union) and the National Samsung Electronics Union (NSEU)—both members of the joint bargaining group—stood at 92.4%.

The largest union, the Super Enterprise Union, saw 53,484 out of 57,316 eligible voters participate, resulting in a turnout of 93.31%. The second-largest union, the NSEU, recorded a turnout of 85.98%, with 7,039 out of 8,187 eligible members voting.

The vote will continue until 10 a.m. on May 27. The final approval will be determined by aggregating the voting results of unions within the joint bargaining group. If more than half of eligible voters participate and more than half of those voters are in favor, the provisional agreement will be finalized.

This provisional agreement includes the establishment of a "Special Management Performance Bonus" system in the semiconductor division, funded by 10.5% of operating profit. It also changes the basis for calculating the performance incentive (OPI)—which can be paid up to 50% of annual salary—from the current Economic Value Added (EVA) to 10% of operating profit.

Industry insiders believe that unless there are unexpected developments, the agreement is likely to be approved. This is because a significant number of Super Enterprise Union members—around 57,000 eligible voters—are employees in the DS division, and the Samsung Electronics Workers' Solidarity Union (Solidarity Union), which mainly represents the Device Experience (DX) division and has been strongly opposed, is not participating in this vote.

It is also expected that the overall impact of the NSEU will be limited, even if all its members vote against the agreement, as it does not represent a large proportion of all eligible voters. There is also reportedly a prevailing sentiment favoring an early resolution due to fatigue from the prolonged negotiations.

However, resistance from DX division employees remains a variable. Under the provisional agreement, DS division employees could receive a substantial performance bonus, while those in the DX division—responsible for smartphones, home appliances, and TVs—are likely to receive only about 6 million won worth of company stock as a bonus. As the gap in performance bonuses between divisions is expected to widen, resentment is spreading, particularly among DX employees.

The Solidarity Union initially formed a joint action headquarters with the Super Enterprise Union and the NSEU to negotiate with management, but withdrew, citing the lack of representation for DX division employees. Since then, as dissatisfaction among DX staff has grown, the number of Solidarity Union members has reportedly increased significantly.

On this day, the Solidarity Union filed for an injunction to halt the vote with the Suwon District Court, initiating legal action. They have also announced plans to file lawsuits to nullify the vote and pursue further legal proceedings.

However, some predict that the likelihood of the injunction being granted has diminished after the court recognized the legitimacy of the Super Enterprise Union's collective bargaining rights earlier in the day. The Suwon District Court rejected a request for an injunction filed by five DX division union members against the Super Enterprise Union to halt the 2026 wage and collective bargaining process, stating that "there is no evidence of a significant procedural flaw."

This content was produced with the assistance of AI translation services.