Samsung strike: Nearly 48,000 workers walk off jobs over bonus dispute
The union has accepted a government mediator’s final proposal, but the dispute over bonus caps and profit allocation remains unresolved, prompting a court injunction to maintain essential production.
Nearly 48,000 Samsung workers in South Korea are set to commence an 18-day strike on May 21 following the collapse of negotiations regarding performance bonuses. The industrial action involves approximately 38 per cent of the company’s domestic workforce, with the majority of participants belonging to the memory division. This sector is currently the primary contributor to Samsung’s financial performance, having posted KRW 53.7 trillion ($35.63 billion) in operating profit for the first quarter of 2026.
The union is demanding the removal of the current bonus cap, which limits payments to 50 per cent of annual salaries, and seeks an allocation of 15 per cent of annual operating profit for bonuses. Union leader Choi Seung-ho confirmed that the organisation accepted the final proposal from a government mediator, yet the strike proceeds because the specific terms regarding bonuses remain unresolved. The union has highlighted that workers at rival SK Hynix received bonuses three times higher than Samsung employees last year, strengthening their position in the dispute.
Samsung has categorised the union’s demands as unacceptable, stating in a formal statement that agreeing to such terms would undermine the fundamental principles of company management. The company noted that while it remains open to dialogue until the last moment, there must be no strikes under any circumstances. The dispute comes at a critical time for the world’s largest DRAM maker by revenue, which reported a total operating profit of KRW 57.2 trillion ($37.96 billion) for the quarter.
In response to the impending walkout, Samsung has obtained a court injunction requiring 7,087 workers to report to work to ensure the maintenance of some production facilities. This legal measure aims to mitigate operational disruptions, although the exact impact on the memory division’s output remains uncertain. The strike is confined to domestic facilities, raising concerns about potential constraints on memory chip supply during a period of record profits.
South Korean labour commissioner Park Soo-keun indicated that the government is prepared to mediate if the parties return to the negotiating table. While the union has accepted the mediator’s final proposal, the failure to reach a consensus on bonus structures has led to the current industrial action. The situation remains fluid, with both sides maintaining their positions as the May 21 deadline approaches.
