Samsung Electronics and its labor union have signed a new wage agreement based on negotiations reached last week. The agreement gives workers in the companyâs semiconductor division, Samsung Device Solutions, a substantial bonus package while helping Samsung avoid potential disruptions to chip production.Samsung Electronics announced today that it had officially signed the new wage agreement with its unionized labor group in the semiconductor division. Following a six-day voting period, 73.7% of union members, or 62,616 employees, participated in the vote, and 95.5% voted in favor of the agreement.The signing ceremony took place earlier today at Samsung Electronicsâ The UniverSE learning center in Giheung, Yongin, South Korea.The following executives attended the ceremony:Yeo Myung-gu and Kim Hyung-ro, Vice Presidents at Samsung ElectronicsChoi Seung-ho, Chairman of the Samsung Group Suppressed Enterprise Labor UnionKim Jae-won, Director of Policy Planning at the National Samsung Electronics Labor UnionFollowing the ceremony, Samsung management pledged to work together with labor representatives to strengthen the companyâs global competitiveness.Yeo Myung-gu, Vice President at Samsung Electronics, said, âStarting with the conclusion of this wage agreement, labor and management will work together with one mind to strengthen global competitiveness. I thank the labor union and all employees for engaging in negotiations with sincerity and never letting go of the thread of dialogue until the end.â Samsung Electronics' headquarter office in South Korea – Source: Samsung After Samsung Electronics reported record profits in the first quarter of this year, largely driven by memory chip sales, workers in Samsung Device Solutions demanded that the company remove the performance bonus cap, which had been set at 50% of annual salary.The labor union also demanded that Samsung distribute 15% of the semiconductor divisionâs operating profit to employees. When management initially rejected those demands, the union threatened to launch an 18-day strike that could have disrupted chip production and potentially cost the company billions of dollars.However, after several rounds of negotiations, Samsung management and the labor union reached an agreement just one day before the strike was scheduled to begin.Under the new agreement, Samsung has removed the performance bonus cap and agreed to distribute 10.5% of the semiconductor divisionâs annual profits to workers in the form of company stock, along with cash bonuses worth 50% of employeesâ annual salaries.This special bonus program will reportedly continue for at least 10 years, provided the division meets certain business targets.Based on those targets, Samsungâs chip division could reportedly generate more than KRW 200 trillion (approximately $132 billion) in annual operating profit from 2026 to 2028, and more than KRW 100 trillion (approximately $66 billion) annually from 2029 to 2035.Of the companyâs total bonus pool, 40% will reportedly be allocated to the semiconductor division, while the remaining 60% will go to other business units.Based on those calculations, each worker in Samsungâs semiconductor division could reportedly receive performance bonuses worth up to KRW 600 million (approximately $400,000). Samsungâs profitable chip division reportedly employs more than 28,000 workers.