Samsung Electronics Corporation's labor unions have approved an agreement with management that provides for the possibility of paying annual bonuses of up to $400,000 to ordinary employees, Yonhap news agency reported.
Voting began on May 21 and ended on Wednesday. The deal was approved by 73.7% of union members and was considered valid. Representatives of the union and the corporation's management signed the wage and bonus agreement today. "With the signing of the wage agreement, employees and management will work together to strengthen our global competitiveness," said Yeo Myung-gu, head of one of the corporation's divisions.
In this way, Samsung Electronics management and unions were able to resolve a labor dispute that threatened a major strike with potential economic damage in the billions of dollars. The parties reached a preliminary agreement on May 20, just hours before the 18-day strike began.
The agreement stipulates that the company will allocate 10.5% of its excess profits from semiconductor sales to bonuses over the next 10 years. According to the agency's calculations, this means that at least 28,000 employees of the semiconductor division could receive bonuses totaling $400,000 by 2026. The amount of cash bonuses for employees in other departments has not yet been determined.