Samsung minority union sues to block new profit‑share pact

A minority union at Samsung Electronics has filed a legal challenge to block the implementation of a new compensation agreement, just days after the company's two largest unions ratified the deal, averting a major strike. The Samsung Electronics Co Union (SECU), representing approximately 13,000 workers primarily in smartphone, TV, and home appliance divisions, will ask a South Korean court to suspend the wage pact.

The agreement, approved by about 74 percent of voting union members earlier this week, ended a five-month dispute that had threatened an 18-day walkout at the world's largest memory chipmaker. The central provision allocates 10.5 percent of operating profit from Samsung's semiconductor division toward employee bonuses, to be paid largely in company stock over a period of at least ten years. The payouts are contingent on the chip division achieving specific annual operating profit targets beginning in 2026.

Based on current profit forecasts, this structure could result in substantial bonuses for semiconductor employees, with some estimates reaching up to 600 million won per worker. In contrast, employees in consumer electronics divisions are expected to receive...