Unions said they expect about 37,000 Samsung Electronics workers to attend a rally in South Korea on Thursday, amid a dispute over a pay gap with rivals such as SK Hynix and a threatened strike.
Large bonuses at SK Hynix, driven by strong earnings from AI-driven memory chip demand, have caused unrest for Samsung workers who have demanded similar pay structures.
Performance pay
The rally at Samsung’s factory complex in Pyeongtaek comes amid soaring membership in unions since 2020.
Unions are demanding that management scrap a cap on performance pay that is currently set at 50 percent of annual base salary, among other requests.
The union is also looking for 15 percent of annual operating profit to be allocated as performance pay and a 7 percent rise in base salaries.
Management has offered 10 percent of operating profit for performance pay, and additional funding to ensure staff in the memory division receive higher payouts than competitors this year.
Pay gap
If no deal is reached, unions are planning an 18-day strike beginning on 21 May that could disrupt chip supplies.
SK Hynix is expected to post a 500 percent rise in first-quarter operating profit, leading to large expected payouts for staff under an agreement reached in September.
