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Yeo Myung-gu, head of the People Team for the DS (Device Solutions) division at Samsung Electronics, and Choi Seung-ho, chairman of the Samsung Electronics chapter of the National Samsung Electronics Union, shake hands with Kim Young-hoon, South Korea’s Minister of Employment and Labor, after signing a tentative wage agreement at the Gyeonggi Regional Employment and Labor Office in Suwon on May 20. Courtesy of Yonhap News. |
[Alpha Biz= Kim Jisun] Samsung Electronics and its labor union have reached a last-minute tentative wage agreement, narrowly avoiding a planned strike.
The deal, signed late on May 20 at the Gyeonggi Regional Labor Office, outlines a new compensation structure combining OPI (performance incentives) and special bonuses for the semiconductor (DS) division.
Under the agreement, DS division bonuses will be set at 10.5% of agreed business performance with no upper limit, allowing some employees to receive up to KRW 600 million (pre-tax) this year. Even loss-making divisions will receive a minimum of KRW 160 million.
The agreement also includes a 6.2% wage increase and stock-based compensation worth KRW 6 million for the DX (device) division.
The deal will be finalized through a union vote scheduled from May 22 to May 27.
While the agreement removes immediate strike risks, shareholder groups have raised concerns, arguing the bonus structure could be excessive and signaling potential legal action.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065620625926439
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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