Details have emerged about a tentative agreement between Samsung and semiconductor workers who threatened to strike. The deal reportedly makes some employees eligible for an average annual bonus of $340,000.
The proposed 18-day strike was contingent on Samsung’s bonus limit for employees in the semiconductor division and a substantial increase in potential bonuses available to employees of SK Hynix, another South Korean chip maker enjoying a boom due to demand for AI components.
Under the terms of the new deal, reuters It is reported that all Chip employees will receive 50 percent of their annual salary in cash as a regular bonus. Additionally, Samsung Semiconductor will set aside 10.5 percent of its annual operating profit to issue stock-based bonuses to employees.
Much of the conversation hinged on how those stock bonuses would be distributed. the new York Times. The final deal sees 40 per cent of the total pot spread across the entire semiconductor division, including loss-making units working on logic chips and third-party components, with the remainder exclusively for the memory chip unit, which is driving the current surge. The union wanted the bulk of the bonus to be distributed equally among the employees.
according to reutersA memory chip employee on a base salary of about $50,000 could now be eligible for a bonus totaling $416,000. It appears that at least some employees have already found ways to spend those bonuses.
As extraordinary as these figures are, the deal is obviously a good one for Samsung, as its bonus payout is still slightly less than that at SK Hynix. The majority of the bonus will also be restricted to stock, while the SK Hynix bonus can be issued in shares or cash, and Samsung has also made bonus payments conditional on the company reaching profit milestones.
Samsung, which recently achieved a valuation of $1 trillion, is South Korea’s largest company and accounts for about a quarter of the country’s exports. Its last earnings report saw an eight-fold increase in profits, largely due to sales of its memory chips. A union leader said the agreement still requires a vote by union members. reuters He hopes that it will be approved.
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