Samsung Workers Authorize Strike Amid Wage Dispute

Unionized workers at Samsung Electronics have voted to authorize a strike in May, escalating a labor dispute over wages and compensation. The move raises the possibility of disruptions to production, particularly as the company benefits from a resurgence in the memory chip market.

Strike Authorization Details

On March 18, 2026, the Samsung Electronics Union Joint Struggle Committee announced that 93.1% of its 66,019 members voted in favor of striking, securing the necessary strike rights . This marks the first potential full-scale walkout in two years .

Key Demands and Management’s Offer

The union is demanding 20% of operating profit as a bonus pool and the elimination of a cap on performance pay, currently set at 50% of annual salary . Analysts project Samsung Electronics’ operating profit to be around 200 trillion won this year, meaning the union’s demands would require approximately 40 trillion won in bonus payments.

Management had previously offered a 6.2% wage increase, 20 company shares per employee, and a choice between 20% of economic value added (EVA) or 10% of operating profit as funding for the Outstanding Performance Incentive (OPI). However, the union rejected this proposal .

Potential Impact on Production and Supply Chains

A strike could significantly impact Samsung’s production, particularly in its crucial memory chip business. As one of the world’s leading suppliers of memory chips, any disruption could have global implications for industries reliant on semiconductors . The planned strike date is May 21, with a potential duration of 18 days.

Company Response and Shareholder Meeting

Samsung Electronics has stated its intention to conclude the 2026 wage negotiations “amicably” . However, the strike could also affect the company’s expanded shareholder return policy, which was announced at its 57th annual shareholders’ meeting on the same day the strike authorization was announced.

Other Developments

During the same period, AMD Chair Lisa Su visited Samsung’s Pyeongtaek campus and met with Samsung Chairman Lee Jae-yong, agreeing on the supply of HBM4, Samsung’s sixth-generation high-bandwidth memory .