Samsung Electronics labor unions held a large rally on Thursday, increasing pressure on the company’s management. They are threatening a full-scale strike next month, which comes at a critical time as the memory chip industry is seeing a major upswing.
A group of three major unions—Samsung Electronics Labor Union (SELU), National Samsung Electronics Union (NSEU), and Samsung Electronics Co. Union (SECU)—organized the rally. It took place at the company’s main semiconductor production campus in Pyeongtaek, Gyeonggi Province. The alliance claimed about 40,000 members attended, while police estimated 30,000.
The union coalition wants Samsung to remove the cap on performance-based bonuses, create clearer ways to calculate them, and set aside 15 percent of annual operating profit for these payouts. Among the unions, SELU recently became Samsung’s largest union with about 74,000 members and is now the official representative for its workers.
“The company has warned of crisis every year, and even now, as it aims to be the global leader, it tells us not to let our guard down,” said Choi Seung-ho, the union’s chair, during the rally. He added, “It was not management, but you, the union members, who made Samsung the world’s no. 1 in semiconductors, who kept production running, improved processes and stayed up all night to raise yields.”
Based on predictions that Samsung’s annual operating profit could reach up to 300 trillion won (about $202.62 billion) this year, the union’s 15 percent demand would mean over 40 trillion won in bonuses. This amount would be higher than the company’s R&D spending of 37.7 trillion won in 2025.
Samsung previously offered special bonuses above the current limit if its Device Solutions division, which includes the semiconductor business, reached top industry performance. However, talks have stalled because the unions want a permanent change to how bonuses are structured. The unions warned they would start a full-scale strike from May 21 to June 7 if no agreement is reached. This strike could result in daily losses of about 1 trillion won from shutting down semiconductor production lines.
“Management says performance is only due to external market conditions, ignoring employees’ hard work, and treats staff as mere numbers instead of dedicated contributors,” Choi said, noting the union will use the strike to bring “change” to the company. “If we stop production for 18 days in next month’s strike, it will create a gap worth nearly 18 trillion won. With the strike, we will make it crystal clear just how important the value of our labor union is.”
This strike is particularly worrying because it could seriously hurt Samsung Electronics’ semiconductor supply, especially when competition in the artificial intelligence chip market is getting tougher. If a strike prevents the company from fulfilling orders for major global customers like Nvidia, it could lead to legal battles over compensation and a major disruption in the global memory chip supply chain.
On the same day, a small group of Samsung shareholders also held a
counter-protest nearby. They criticized the unions’ demands and warned of broader economic problems. “Negotiations over performance bonuses may be a matter between labor and management, but closing a plant is a completely different issue,” the group said.
“Stopping and then restarting a semiconductor factory requires huge amounts of money and time.” “A plant is a real asset where shareholders own a part, and shutting it down during a busy period directly harms the company and its shareholders,” they added.
