Samsung Electronics Labor and Management Break Off 2026 Wage Talks...Begin National Labor Relations Commission Mediation Application

Sharp labor-management divide over bonus calculation method
Plan to secure right to strike if mediation fails

The joint bargaining group, which includes the Samsung Electronics Branch of the Supra-Enterprise Labor Union, the first single majority union in Samsung Electronics' history, declared a breakdown in wage negotiations after failing to narrow its differences with management.

A view of Samsung Electronics' Seocho Building in Seocho-gu, Seoul. Yonhap News

The joint bargaining group, made up of the Supra-Enterprise Labor Union, the National Samsung Electronics Labor Union, and the Samsung Electronics Labor Union Donghaeng, announced on the 19th, "We are officially declaring the breakdown of the 2026 wage negotiations and are initiating an application for mediation with the National Labor Relations Commission."

The joint bargaining group plans to submit an application for labor dispute mediation on the 20th and intends to secure the right to strike in case the mediation outcome falls short of expectations. Woo Hakyeong, chief negotiator and representative of the joint bargaining group, explained the background of the declaration of breakdown, saying, "It has become difficult to make any further meaningful progress in the wage negotiations."

The core issue in this round of negotiations was the method of calculating the Over-Profit Incentive (OPI). The joint bargaining group demanded that: ▲ the OPI occurrence period be fixed at three years; ▲ performance exceeding the 50% OPI threshold be compensated at a level higher than competitors; and ▲ the sharing ratio of excess performance profit be set at 50% for each of the division and the business unit.

In contrast, management proposed to announce at the beginning of the year the operating profit level at which OPI begins to accrue, and to subdivide the 0–50% range into 10% increments to indicate the expected operating profit. It is reported that, in particular, if the DS (semiconductor) division ranks first in Korea in both sales and operating profit this year, Samsung Electronics would pay excess profit for every 1 trillion won in operating profit, but would do so entirely in stock.

Samsung Electronics plans to continue consultations with the unions to facilitate smooth wage negotiations.

This content was produced with the assistance of AI translation services.