News
Samsung Electronics workers demand salary cap removal following pay gap with SK hynix
Monday, March 30, 2026 at 04:11 AM
Labor tensions are rising at Samsung Electronics as employees observe that despite the company generating higher total profits, individual compensation lags behind competitor SK hynix. Workers are reportedly pushing for the removal of salary caps and significant pay increases to match industry rivals.
Context
As of March 30, 2026, Samsung Electronics is facing a historic labor crisis as its unionized workforce prepares for a general strike scheduled to begin on May 21. Following a 93.1% approval vote, the union is demanding the removal of the 50% annual salary cap on performance bonuses (OPI) and a 7% wage increase. This unrest is driven by a widening compensation gap with rival SK hynix, which recently awarded record bonuses equivalent to 2,964% of base monthly salaries after posting a 47.2 trillion won operating profit in 2025. This marked the first time SK hynix outperformed Samsung in annual operating profit, fueled by its dominance in the high-bandwidth memory (HBM) market.
The conflict highlights a growing productivity divide; reports indicate Samsung's semiconductor division generated only one-quarter of the operating profit per employee compared to SK hynix in 2025. Management has offered a 6.2% wage hike and restricted bonus transparency, but refuses to lift the OPI cap, citing financial fairness across non-memory divisions. If the 18-day walkout proceeds, it would be the largest strike in the company's history, potentially disrupting the global supply of DRAM and next-generation HBM4 chips during an ongoing AI semiconductor supercycle.
Sources (8)
Samsung Electronics Union Threatens Penalties for Non- ...Samsung faces growing risks as labor unions move toward strike - The Korea TimesSamsung awards DS division with bonuses of up to 16% in ...SK hynix employees to get largest-ever performance bonuses this week after chipmaker's record-setting yearSK hynix beats Samsung as most preferred company for job seekers: survey - The Korea HeraldSamsung Electronics Faces Dilemma as Union Demands Parity with SK hynix - BusinesskoreaProfitability Gap with SK Hynix Fuels Conflict — BigGo FinanceCountdown to Samsung's Largest Strike in History! Price ...
Related Companies
SK Hynix
000660
Samsung Electronics
005930