Samsung Electronics’s largest labor union held a mass rally April 23 and warned of a strike, escalating a dispute over bonuses and raising concerns about potential disruptions to chip production.
About 40,000 members gathered outside the company’s Pyeongtaek semiconductor complex, demanding the removal of caps on performance bonuses and greater transparency.
Union leader Choi Seung-ho said months of negotiations had failed, accusing management of maintaining opaque practices and offering only one-time payments.
The union is seeking bonuses equal to 15% of operating profit and said it will launch a full strike from May 21 through June 7 if no deal is reached. The group, with about 74,000 members, recently secured majority union status.
Shareholder activists staged a counterprotest, arguing that halting production during a semiconductor upcycle would harm investor interests.
Samsung said safety-related operations at chip facilities must continue, asking about 5% of staff tied to critical systems to remain on duty. Under South Korean law, disrupting safety operations during a strike can lead to criminal penalties.
Industry observers warn that even brief disruptions could damage wafers, delay shipments and ripple through global supply chains already sensitive to shocks.
Samsung said it would act in line with the law while minimizing risks to customers and the broader economy.
