AdvertisementEast AsiaMembers of the Samsung Electronics labour union stage a mass rally demanding the removal of a cap on performance bonuses, outside the company's foundry and semiconductor factory in Pyeongtaek on Apr 23, 2026. (Photo: AFP/Jung Yeon-je)23 Apr 2026 03:13PM (Updated: 23 Apr 2026 03:23PM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInAdd CNA as a trusted source to help Google better understand and surface our content in search results.Read a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST PYEONGTAEK, South Korea: Tens of thousands of Samsung Electronics workers rallied at a sprawling factory complex south of Seoul on Thursday (Apr 23), venting their anger over compensation levels ahead of a planned lengthy strike that could disrupt AI chip production.Union organisers put the number of protesters at 40,000, making the demonstration the largest to date for Samsung, which has long been known for its union-busting tactics but saw workers walk out for the first time in 2024.Should their demands not be met, they plan to strike for 18 days from May 21. That could delay shipments to customers, push up chip prices further and benefit rivals.MANY WORKERS SAID TO LEAVE FOR RIVALChief among workers' grievances is what they call a massive gap in bonus pay with crosstown rival SK Hynix, which beat Samsung to the punch in delivering high bandwidth memory for artificial intelligence chip units to Nvidia and other clients following the release of ChatGPT in late 2022.Show MoreShow LessThat said, the AI boom has also helped Samsung's profits surge to record levels."In reality, many employees are leaving for SK Hynix," said Song Yong-gi, 39, who handles logistics tasks for an assembly line in Samsung's chip division."At the end of the day, more than 90 per cent of employees work for pay, and the compensation gap has become so wide that it's driving these moves," Song said.Samsung Electronics’ labour union members take part in a protest against the company’s compensation levels ahead of a planned lengthy strike in front of Samsung Electronics semiconductor plant in Pyeongtaek, South Korea, Apr 23, 2026. (Photo: REUTERS/Kim Hong-Ji)Other Samsung workers, who gathered in black vests for the mass sit-in at the Pyeongtaek campus, also said that many of their colleagues had left for SK Hynix.The Samsung Electronics Labour Union argues that a chip division employee with a base pay of 76 million won would receive 38 million won in bonus pay for 2025, or less than a third of the figure a similarly paid SK Hynix employee would qualify for.Samsung said it would continue to make efforts to reach a swift agreement in wage negotiations.A Samsung official speaking on condition of anonymity has said that production halts caused by "even a single strike" could damage trust with customers and take years to recover from.WORKERS WANT CAP ON BONUS PAY SCRAPPEDSK Hynix in September accepted its union's demand for compensation reform and hefty bonuses, fueling Samsung employees' frustration over the pay gap and sparking a surge in union membership.Union members now number more than 90,000, representing over 70 per cent of Samsung's South Korean workforce.One of the most contentious issues is a union demand to scrap a cap on bonus pay, currently set at 50 per cent of annual base salary, which management has rejected. SK Hynix agreed to eliminate the cap on bonus pay, Samsung union officials said.Samsung's union is also demanding that 15 per cent of annual operating profit be allocated as bonus pay and a 7 per cent hike in basic salaries.Management has, however, offered 10 per cent of operating profit for performance pay and additional funding to ensure memory division employees receive higher payouts than competitors this year.Chip boom drives fastest South Korea growth in five yearsSource: AFP/ecNewsletterWeek in ReviewSubscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.NewsletterWeek in ReviewSubscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.Sign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...