Samsung Workers Demand AI Profit Share
Tens of thousands of individuals assembled outside Samsung Electronics Co.’s primary chip facility to advocate for employees receiving a larger portion of the profits generated by the AI surge. It is reported that approximately 30,000 individuals participated in the rally in Pyeongtaek, a city in southern South Korea known for Samsung’s extensive semiconductor complex, whereas organizers claimed the attendance was 39,000. Samsung’s labor union is advocating for a distribution of 15 percent of operating profit to be allocated to employees within the chip division. The figure — exceeding 40 trillion won — could imply an average of over $400,000 per worker.
Samsung’s management and the union have engaged in both formal and informal discussions, during which the company proposed to allocate 10 percent of operating profit to bonuses, a 6.2 percent wage increase, and additional benefits such as assistance for preferential mortgage loans. The union rejected the proposal, advocating for a 7 per cent increase in wages. Korea’s most valuable company is contending with pressures regarding compensation and bonuses as it navigates a recovery after lagging behind domestic competitor SK Hynix Inc. in the profitable high bandwidth memory sector.
Alongside Micron Technology, the trio has progressively redirected their production in recent years towards HBM utilized in Nvidia’s AI accelerators. Earlier this year, Samsung became the first company to commercially ship next-generation HBM4 to customers. “The company has articulated concerns of crisis annually,” Choi Seung-hoc said. “But in the midst of those crises, it was not management that sustained Samsung Electronics. It was the employees here — the union members — who made the company the world’s leading semiconductor producer, who manufactured, improved processes, worked through the night, and raised yields.”
The union has issued a warning of an 18-day strike commencing on May 21. Employees have highlighted the increasing distributions at SK Hynix, which in the previous year committed to designating 10 percent of its annual operating profit for a performance bonus pool, as justification for their demand for higher wages. A spokesperson for Samsung stated, “Samsung will continue to make efforts to reach a swift agreement in the wage negotiations.” For decades, Samsung successfully maintained a distance from workers’ unions. In recent years, organized labor groups have established a stronger presence, empowering employees to advocate for their interests more openly.
