A tentative agreement on wages and benefits has been reached between Samsung Electronics and one of its labor unions for the year 2025.
Samsung Electronics reached a tentative settlement with its respective union and is supposed to implement a 5.1% raise along with stock grants for 2025. This agreement is expected to ease frayed relations after Samsung’s first-ever labor strike last year.
Under this latest agreement, each employee would be given 30 shares very unorthodox arrangement worth approximately $1,200. Each employee will also get a discount of 2 million won ($1,416) on domestic electronics. For the very first time, Samsung would also recall retirees with three or more kids.
The National Samsung Electronics Union will vote on the tentative agreement from February 28 to March 5. This deal comes at a crucial period for Samsung as it faces serious competition with SK Hynix and a much fiercer rivalry with Chinese smartphone companies in the AI memory chip arena.
In addition, the company’s performance suffered greatly last year, losing close to a third of its market value. The historic strike came last year after failed negotiations to increase wages and bonuses, which unsettled investor sentiment. Samsung had to concede that some of the bonuses would be paid in company shares and not in cash.
While some may take this tentative agreement to be an opportunity to restore stability in working relations and regain competitive spirit for Samsung among tech firms.
