Samsung Electronics LaborUnion Authorizes May Strike Over Bonus Dispute
SEOUL, March 23 – Samsung Electronics’ labor unions have secured strike authorization with an overwhelming 93.1% approval in a recent vote, paving the way for a historic walkout scheduled from May 21 to June 7. If carried out, it would mark only the second strike in the company’s 57-year history and the first since a brief walkout in July 2024.
The joint struggle council, representing three major unions at Samsung Electronics, announced the strike plan after a covenant action vote held from March 9 to 18 showed 61,456 in favor out of 66,019 participants (73.5% turnout). The union says it views the result as a “stern mandate” from its members.
At the heart of the dispute are demands for greater transparency and fairness in the company’s performance-based bonus system, known as OPI (Overachievement Incentive). The union is calling for:
- Clear disclosure of how OPI funds are calculated and distributed
- Removal of the current cap on OPI payments
- A 7% base wage increase
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Management has countered with a proposal allowing divisions to choose whether OPI funds come from 20% of economic value added (EVA) or 10% of operating profit, alongside a 6.2% wage increase and the granting of 20 treasury shares per employee. However, the company has refused to eliminate the OPI cap, citing concerns that doing so would disproportionately benefit divisions that easily exceed targets, creating perceived inequities among units with tougher performance goals.
Negotiations between the unions and management collapsed last month after months of talks, prompting the union to file for mediation with the National Labor Relations Commission. When mediation was halted, the union escalated to strike preparations.
On March 23, the joint struggle council met privately with DS Division Head and Vice Chairman Jeon Young-hyun to reiterate that OPI cap removal and calculation transparency are prerequisites for renewing negotiations. The union warned that without progress, it would proceed with the strike and consider further escalatory actions.
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Industry analysts warn that a strike during May–June could disrupt Samsung’s semiconductor output, particularly high-bandwidth memory (HBM) production, at a time when demand for AI chips is surging. Approximately 70% of Samsung’s unionized workforce is in the DS division, raising fears of significant bottlenecks in the global supply chain.
The union has announced a large rally planned for April 23 to build momentum toward the May walkout. Samsung Electronics said it remains committed to resolving the dispute through dialogue but has not indicated any concessions on the OPI cap issue.
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