Synopsis
On February 24, Samsung Electronics and its labor union reached a tentative wage deal that includes an average pay increase of 5.1% for 2025. The agreement, following extensive negotiations, entails a 3% rise in base salary and a 2.1% boost in bonuses, alongside 30 treasury shares per employee.Key Takeaways
- Samsung Electronics agrees to a 5.1% pay hike for 2025.
- Includes a 3% increase in base salary.
- Offers a 2.1% boost in bonuses.
- Establishment of a joint task force for bonus system improvement.
- Vote on the agreement expected before next Wednesday.
Seoul, Feb 24 (NationPress) Samsung Electronics and its labor union have announced a tentative wage agreement on Monday, featuring an average pay increase of 5.1 percent for the year 2025, as per officials.
This agreement follows 48 days of negotiations, which commenced on January 7.
As part of this deal, employees will benefit from a 3 percent hike in base salary and an additional 2.1 percent increase in bonuses, along with 30 treasury shares allocated to each employee, according to the officials.
The parties have also decided to establish a joint task force aimed at refining the bonus system, with updates to be provided every six months.
This agreement is pending a vote from the union, which is expected to take place before next Wednesday.
Samsung Electronics and the National Samsung Electronics Union (NSEU), the largest labor union within the tech giant, were unable to finalize a wage agreement throughout the previous year. The NSEU represents approximately 36,000 workers, which constitutes around 30 percent of the company’s total workforce.
In light of stalled discussions, the NSEU conducted the first-ever strike in the history of Samsung Electronics last year.
“We will concentrate on enhancing our business competitiveness by leveraging this wage agreement as a pivotal moment for labor-management harmony,” remarked an official from Samsung Electronics.
Last December, the NSEU conducted a confidence vote, with 62 percent of its members endorsing the current leadership, reaffirming their trust in the NSEU leadership for wage negotiations.
This confidence vote was executed following the NSEU's decision on November 21 to reject a preliminary wage agreement for 2023 and 2024 proposed by their leadership.
This previous agreement, established after a month-long strike by the union in July, included a 5.1 percent pay raise along with other bonuses. Consequently, the NSEU aimed to resume negotiations at the earliest opportunity, as reported.
