A majority of unionised employees at Samsung Electronics (USOTC:SSNHZ) voted on Wednesday to approve a preliminary wage agreement, preventing a large-scale strike that had raised concerns over global semiconductor supply chains and the wider South Korean economy.
According to the union, around 74% of participating workers voted in favour of the deal. The agreement cancels plans for an 18-day strike involving approximately 48,000 employees, the majority of whom work within Samsung’s semiconductor business.
Samsung shares listed in Seoul surged as much as 8% during trading, reaching a record high of 323,000 won by 01:51 GMT.
The agreement, brokered with government involvement, was finalised last week following difficult negotiations centred on bonus arrangements and profit-sharing tied to rapidly growing demand for artificial intelligence memory chips.
As part of the ratified deal, Samsung will introduce a new special performance bonus system covering a 10-year period for workers in its semiconductor division. Employees will also receive an average wage increase of 6.2%.
Some labour unions had opposed the agreement and attempted to block the vote through legal action.