Unionized workers at Samsung Electronics in South Korea have voted to accept a wage agreement for 2024, concluding months of negotiations and averting what would have been the first strike in the company’s 55-year history. The National Samsung Electronics Union (NSEU) announced the results of the member vote on Wednesday, May 29.
The agreement finalizes a 5.1% pay increase for the year. The decision concludes a period of uncertainty after the union, which represents over 28,000 employees, had secured the legal right to conduct a strike.
Negotiations between the NSEU and Samsung management began earlier in the year. The union initially sought a 6.5% wage hike and an additional paid vacation day, citing inflation and the company’s profits. Management’s final offer was the 5.1% increase, which a company-management labor council had previously accepted.
After multiple rounds of talks failed to produce a deal, the dispute was referred to the National Labor Relations Commission for mediation, which also ended without an agreement. This outcome legally cleared the path for the union to take industrial action. In April, a large majority of NSEU members voted in favor of a potential strike, marking a significant development in the company’s labor relations.
The NSEU is the largest of several unions at Samsung Electronics, representing more than a fifth of its domestic workforce. The prospect of a work stoppage had prompted discussion among industry analysts about potential disruptions to global semiconductor supply chains, as Samsung is the world’s largest manufacturer of memory chips.
Following the successful strike vote, the union engaged in several protest actions, including demonstrations outside Samsung’s headquarters in Seoul and at its major chip manufacturing facility in Hwaseong.
In a statement following the May 29 vote, the union indicated it would accept the company’s proposal. Details on the final vote tally were not immediately released by the union. Samsung Electronics has not issued a public comment on the ratification of the wage deal. The agreement applies to the 2024 fiscal year.
