Samsung Electronics has taken legal steps to prevent escalating labor unrest, filing an injunction with the Suwon District Court in South Korea to block what it describes as potentially unlawful union activities ahead of a planned strike.
The move comes as tensions rise between management and the National Samsung Electronics Labor Union over performance-based compensation in the company’s highly profitable memory chip division.
According to the company, the planned industrial action could go beyond lawful protest, potentially involving disruptions to production sites, interference with safety systems, and attempts to pressure non-union employees into joining the strike. Samsung argues that such actions could threaten operational stability in one of its most critical manufacturing segments.
The stock, listed under OL2T.L, slipped slightly as investors weighed the risk of production disruption against the legal effort to contain the situation.
The labor union has announced plans for a mass rally later this month, followed by a broader strike next month if negotiations remain stalled. The core dispute centers on performance-based pay tied to Samsung’s semiconductor profits, which have surged on the back of strong demand for AI-related memory chips.
The National Samsung Electronics Labor Union criticized the court filing, framing it as a pressure tactic rather than a genuine attempt at dialogue. The union also pushed back against Samsung’s attempt to expand the definition of “eligible workers” for certain labor agreements, particularly including equipment and manufacturing staff.
This disagreement highlights a growing rift between management and workers at a time when Samsung’s semiconductor division is generating a disproportionate share of company profits.
At the heart of the conflict is a potential bonus pool estimated at up to 45 trillion won (around US$30 billion), based on analyst projections of Samsung’s operating performance. The union is demanding performance bonuses equivalent to 15% of annual operating profit, an increase from a previous 10% proposal following record earnings.
Samsung asks court to block labour unions from holding a strike https://t.co/vVDbkBasbb https://t.co/vVDbkBasbb
— Reuters Business (@ReutersBiz) April 16, 2026
Samsung recently reported operating profit of 57.2 trillion won (US$38.9 billion), fueled largely by surging AI memory chip demand, marking a 755% year-over-year jump. The scale of the requested bonus pool has drawn attention because it exceeds the company’s annual research-and-development spending of 37.7 trillion won and is roughly four times its dividend payouts.
The widening gap between semiconductor workers and other divisions, such as smartphones and consumer electronics, has also intensified internal tensions within the company.
Market analysts warn that a prolonged strike could disrupt global semiconductor supply chains. Samsung produces a significant share of the world’s DRAM chips domestically in South Korea, meaning any production interruption could have immediate ripple effects across the tech industry.
Semiconductors account for more than one-third of South Korea’s total exports, underscoring how central the sector is to the national economy. A disruption at Samsung would therefore extend beyond corporate earnings, potentially affecting export performance and global chip availability.
Inside the company, the bonus structure has also created friction between divisions. While the semiconductor segment is expected to contribute the majority of profits, other business units have expressed concerns that compensation frameworks are becoming increasingly uneven, further complicating internal alignment.
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