Last week, Samsung narrowly swerved a planned South Korean factory strike with a last-minute deal. The workers’ union had agreed to not go ahead with the strike planned to commence on May 21 as it put a fresh proposal to an internal vote.
That vote has since taken place, with 74% of union members voting in favour of a profit sharing deal that could result in workers taking home an average of $340,000 in bonuses (via Bloomberg). It just goes to show what can be achieved through collective bargaining power, especially in an industry so central to AI as memory manufacturing has become.
The agreement will see 78,000 semiconductor workers receive 10.5 per cent of Samsung’s operating profit. According to the Financial Times, projections suggest this bonus pool will amount to a total of $22.6 billion (or 34 trillion in South Korean Won). Considering Samsung is a member of the $1 trillion market capitalisation club, profit sharing with its workers is only fair.
40% of the bonus pool will be shared out equally, while what’s left is to be awarded based on departmental performance. The Financial Times estimates memory chip workers will receive a bonus roughly equivalent to $400,400.
This profit sharing deal is similar to the one SK Hynix struck with its own workers last year, promising 10 % of operating profits for the next decade. As an interesting side note, the Chosun Daily reported that SK Hynix employees were elevated “to the same ‘precious’ status as traditional high-status professions like doctors and lawyers in the [South Korean] marriage market” as a result of this ‘bonus bonanza’.
(Image credit: Jung Yeon-je / AFP via Getty Images)
A number of Samsung workers also left the company for greener pastures at the rival company. There’s still a risk workers will continue to leave, as the final deal for Samsung’s employees is ever so slightly less generous in terms of per-person compensation.
Looking at the tech and games sphere more broadly, the role of unions only feels more urgent (even if few have a shot at such a generous profit share deal as Samsung or SK Hynix’s employees). For one thing, the Rockstar situation hasn’t been far from my mind since last year.
For another, more recent example, three years after laying off more than 1,000 employees, Hasbro and Wizards of the Coast have begun sending daily emails and physical letters encouraging the survivors not to unionise. These examples, plus many, many more I could mention, are why game dev union members marched at this year’s GDC to propose a ‘Game Workers’ Bill of Rights.’ A better world is possible—and not just for game and tech workers.
