Jenith
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Samsung Electronics, which posted record-breaking profits last quarter, is now facing labor issues at its semiconductor division. Over 40,000 workers at its chip plant in Pyeongtaek, South Korea, staged a massive strike earlier today. It is being described as the largest rally in the companyâs history.
Traffic control and riot police has reportedly been deployed around the Pyeongtaek campus.
According to reports, Samsungâs labor union gathered at the companyâs semiconductor facility in Pyeongtaek for what it called the âApril 23 Struggle Resolution Rally.â More than 40,000 employees participated, representing roughly one-third of Samsungâs total workforce. The workers are protesting the companyâs performance-based pay cap. The union is demanding that Samsung remove the cap and allocate around 15% of its operating profit as performance bonuses.
https://www.imeisource.com/wp-content/uploads/2026/04/Samsung-Semiconductor-Plant-Pyeongtaek-South-Korea-Workers-Strike-April-2026.jpg
Unionized chip plant workers at Samsung Electronics' semiconductor chip plant in Pyeongtaek, South Korea – Source: @jukan05 / X
Analysts expect Samsung Electronicsâ operating profit to reach around KRW 300 trillion this year. A 15% allocation would amount to approximately KRW 45 trillion. If the two sides fail to reach an agreement, the union has warned of an 18-day general strike starting May 21, 2026. Such a move could lead to significant losses for the company and disrupt the global memory chip supply chain.
During previous negotiations, Samsung proposed compensation packages that match or exceed those offered by its competitors. However, the union continues to push for the removal of the performance bonus cap.
Traffic control and riot police has reportedly been deployed around the Pyeongtaek campus.
Why are Samsung's semiconductor chip division workers protesting?
According to reports, Samsungâs labor union gathered at the companyâs semiconductor facility in Pyeongtaek for what it called the âApril 23 Struggle Resolution Rally.â More than 40,000 employees participated, representing roughly one-third of Samsungâs total workforce. The workers are protesting the companyâs performance-based pay cap. The union is demanding that Samsung remove the cap and allocate around 15% of its operating profit as performance bonuses.
https://www.imeisource.com/wp-content/uploads/2026/04/Samsung-Semiconductor-Plant-Pyeongtaek-South-Korea-Workers-Strike-April-2026.jpg
Unionized chip plant workers at Samsung Electronics' semiconductor chip plant in Pyeongtaek, South Korea – Source: @jukan05 / X
Analysts expect Samsung Electronicsâ operating profit to reach around KRW 300 trillion this year. A 15% allocation would amount to approximately KRW 45 trillion. If the two sides fail to reach an agreement, the union has warned of an 18-day general strike starting May 21, 2026. Such a move could lead to significant losses for the company and disrupt the global memory chip supply chain.
During previous negotiations, Samsung proposed compensation packages that match or exceed those offered by its competitors. However, the union continues to push for the removal of the performance bonus cap.