Samsung chip workers reject $340,000 bonus, demand annual payouts like SK hynix’s $900,000 — impending 18-day strike could cost up to $11.7 billion

Samsung Semiconductor Division workers in South Korea have rejected a one-time bonus offer of approximately $340,000 USD per employee. The labor union is demanding a guaranteed annual bonus allocation of 13 percent of operating profit instead. This dispute centers on the division’s record profits driven by the artificial intelligence infrastructure build-out.

Workers want guaranteed annual payout model instead of one-time payment

Negotiations are critical as the company faces the threat of an 18-day general strike scheduled from May 21 to June 7. A previous single-day strike in April already caused a 58 percent drop in production for one shift. Workers are comparing their potential payouts to those at rival SK hynix, which recently gave its employees $477,000 and guaranteed $900,000 annually for the next ten years.

An 18-day strike could cost Samsung between $6.9 billion and $11.7 billion in direct losses. This financial estimate comes from Prof. Kwon Seok-joon of Sungkyunkwan University, who told the Financial Times that the maths gets uncomfortable fast. Samsung workers are comparing their potential payouts to those at rival SK hynix, which recently gave its employees $477,000 and guaranteed $900,000 annually for the next ten years.

A smaller union representing smartphone, TV, and home appliance workers has pulled out of the joint strike plan. Other arms of the company are said to be struggling because of higher costs brought about by the chip shortage. The semiconductor division is reportedly making record profits while these other divisions face financial pressure.

Prof. Kwon Seok-joon provided the financial loss estimates to the Financial Times. Samsung has not confirmed the exact financial impact of a potential strike or the final terms of any new agreement.