Facing a looming union strike, Samsung Electronics’ top executives urged employees Thursday to prioritize the company’s long-term competitiveness. This critical appeal comes amidst stalled wage talks, primarily over performance-based pay, risking a significant labor conflict.
In an internal message, Jun Young-hyun, Vice Chairman and head of the crucial Device Solutions (DS) division (overseeing the semiconductor business), alongside Roh Tae-moon, President and head of the Device eXperience (DX) division, assured staff that management is committed to responsibly navigating the challenging global business environment.
The executives emphasized, “We ask all employees to do their utmost in their respective roles so that our future competitiveness is not weakened.” They added, “The company will continue discussions with an open mind and work to find a solution that employees can support.”
This rare direct appeal from Samsung Electronics’ senior leadership highlights the escalating dispute over its performance bonus system. The company’s union is now preparing for a full-scale strike within the next two weeks.
Samsung has been actively engaged in wage agreement negotiations with a joint labor union bargaining group since December 2025. The company stated it has put forth comprehensive proposals, carefully considering employee compensation, current business conditions, and the imperative to safeguard its future competitiveness.
Jun and Roh reiterated, “During the negotiations, the company sought to put forward proposals that reflect employee compensation, future competitiveness and business conditions, while working to build a broader understanding through dialogue with the union.”
Expressing regret over the lack of a final agreement, the executives acknowledged, “As negotiations have dragged on, we believe many employees may be feeling concern and frustration.”
Their message appears designed to signal management’s readiness to proactively resolve the labor dispute through continued dialogue, aiming to avert the planned strike.
During intensive wage negotiations, which commenced on March 26, Samsung presented what it termed an “unprecedented offer.” This proposal aimed specifically at boosting morale, particularly among employees within its vital DS division.
The core of this offer included a commitment: if the DS division surpasses its domestic competitors, Samsung would provide performance bonuses exceeding the existing cap and at a level superior to rival companies. Furthermore, a special reward was proposed, potentially surpassing the current performance bonus cap of 50 percent of annual salary.
Despite these overtures, the union has announced definitive plans to stage an 18-day strike, scheduled from May 21 to June 7.
The executives underscored Samsung’s continued openness to further discussions, simultaneously urging employees to maintain focus on the company’s long-term competitiveness amidst intensified global competition.
However, the union persists in demanding the permanent abolition of the performance bonus cap and more extensive reforms to the compensation system. This unwavering stance, despite Samsung’s flexible offer, has left talks stalled ahead of the imminent strike.
yeeun
