GERMANY PERSPECTIVE

Berlin, May 20, 2026. Samsung Electronics reached a provisional agreement with its union, averting a potential 18-day work stoppage that would have mobilized around 48,000 employees — 38% of the South Korean group's workforce. Tagesschau covered the story in two parts: first, the announcement of an imminent historic strike, then, a few hours later, confirmation of a last-minute deal.

The central issue revolves around bonus distribution in the semiconductor division. In the first quarter of 2026, Samsung recorded an operating profit of 57.2 billion won (around 33 billion euros), nearly eight times the result from the same period a year earlier. Almost 94% of this profit comes from the chip sector, driven by demand for AI components. Tagesschau notes that, based on a projected annual profit of 300 billion won (171 billion euros), the union's demand for 15% of the result would have represented an average bonus of around 350,000 euros per affected employee — a sum described as 'enormous' by the editorial team.

Samsung opposed this, citing the sector's strong cyclical volatility and the need to conserve liquidity for investment. The group submitted a counter-proposal estimated at 10% of the operating profit, but over three years at most and subject to profitability thresholds. A mediation led by Labor Minister Kim Young-hoon ultimately allowed for a provisional agreement: a 6.2% salary increase and the introduction of a performance-based bonus linked to the semiconductor division, the amount of which was not disclosed.

Tagesschau clarifies that the union has suspended the movement and will put the agreement to a vote among members from May 22 to 27. The outcome remains uncertain. German coverage highlights the exceptional nature of the situation: Samsung has long been perceived as particularly hostile to unions, and the 2024 strike — the company's only in its history — mobilized only 6,000 people.

On a macroeconomic level, German media recall the estimates of the South Korean central bank: a general strike could have reduced the country's growth by 0.5 percentage points this year, with losses estimated at around 20 billion dollars. The US Chamber of Commerce in South Korea had also warned of potential disruptions to global supply chains.