Forty-seven thousand workers at the world's largest memory chipmaker were ready to walk out Thursday, and they're not walking now. The deal they got says a lot about how the AI boom is reshaping who gets paid.
Samsung Electronics' largest union said Wednesday it will suspend a planned general strike that was set to run May 21 through June 7, with members voting on the tentative wage deal from Saturday through May 28.
The strike threat was credible because the workforce was credible, with roughly 47,000 employees involved and industry observers warning that a full walkout could cost the South Korean economy up to 100 trillion won, given how much of the country's exports run through Samsung's chip lines.
President Lee Jae-myung had publicly urged both sides to settle, while the Labor Ministry was openly weighing an emergency arbitration order that would have paused any strike for 30 days.
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Pay scale wasn't really the issue, because the fight was about who gets a piece of the AI boom.
Samsung's chip division posted a record operating profit of 53.7 trillion won in Q1, roughly $36 billion at recent exchange rates, with most of that coming from memory chips selling into AI data centers.
The two sides came in far apart:
They reportedly agreed to scrap a rule that capped bonuses at 50% of yearly salary, though they were still split on how to share semiconductor bonuses with Samsung's loss-making non-memory units when mediation closed.
The union also proposed sharing 70% of the semiconductor bonus pool across the entire division, with the remaining 30% tied to business-unit performance. Management argued that approach would reward loss-making units and water down the link between pay and output.
The vote runs from Saturday morning through May 28, and if members reject the deal, the strike can be back on the calendar fast.
For now, the global memory supply is safe, while the argument over who gets paid as AI demand breaks records is not.
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