Samsung memory chip workers negotiated bonuses of $340,000 this year

Details have been discovered about a trial agreement it struck a chord between Samsung and semiconductor workers who threatened to strike. Agreement he says causes some employees to receive annual bonuses of $340,000.

The 18-day strike hinged on Samsung’s cap on bonuses for semiconductor workers, and followed a big increase in bonuses for workers at SK Hynix, another South Korean chipmaker that has been buoyed by demand for AI tools.

Under the new agreement, Reuters reports all chip workers will receive 50 percent of their annual salary as a general bonus in cash. Furthermore, Samsung will set aside 10.5 percent of its annual profit to pay stock-based bonuses to semiconductor employees.

Much of the discussion hinged on how the stock bonuses would be distributed, according to The New York Times. The final agreement sees 40 percent of the total pot spread across the entire semiconductor sector, which includes loss-making units that work on chip logic and third-party components, and the rest mainly for the memory chip unit, which is driving current growth. The union wanted a large portion of the bonuses to be distributed equally among the workers.

According to Reutersa memory chip worker on a starting salary of about $50,000 can now receive a total bonus of $416,000. Apparently some employees do he already found a way wasting those bonuses.

As surprising as these figures are, the deal is good for Samsung, as its bonus payments are still slightly lower than those offered at SK Hynix. Most bonuses will also be stock-based, while SK Hynix’s bonuses can be paid in shares or cash, and Samsung has also made bonus payments tied to the company’s profitability.

Samsung, that he recently acquired a net worth of $1 trillionis the largest company in South Korea, and accounts for about a quarter of the country’s total exports. His final reports are earnings eight times the profitmainly due to the commercialization of memory chips. The agreement still needs to be voted on by the board members, but the board leader said Reuters that they hope it will be approved.