Samsung’s memory chip employees negotiated $340,000 in bonuses this year

Details have emerged about A Initial deal Clashes occurred between Samsung and semiconductor employees who threatened to strike. The deal It is said It makes some workers eligible for average annual bonuses of $340,000.

The proposed 18-day strike was contingent on Samsung’s maximum bonuses for employees in its semiconductor division, and came on the heels of a spike in potential bonuses available to employees of SK Hynix, another South Korean chipmaker enjoying a boom thanks to demand for artificial intelligence components.

Under the terms of the new deal. Reuters Reports indicate that all chip workers will receive 50 percent of their annual salaries as a regular cash bonus. Furthermore, Samsung will allocate 10.5% of its annual operating profits to issue stock-based bonuses to semiconductor employees.

Much of the negotiation hinged on how these stock bonuses would be distributed, according to Hans New York Times. The final deal sees 40% of the total amount distributed to the entire semiconductor division, which includes loss-making units that work on logic chips and third-party components, with the rest allocated to the memory chip unit, which is driving the current boom. The union wanted to distribute a greater share of bonuses equally among employees.

according to Reutersa memory chip worker who earns a base salary of about $50,000 could now be eligible for a total bonus of $416,000. At least some of the employees seem to have Already found ways To spend those rewards.

Although these numbers are unusual, the deal looks good for Samsung, as its bonuses are still slightly lower than those offered at SK Hynix. The majority of bonuses will also be limited to shares, while SK Hynix bonuses can be issued in the form of shares or cash, and Samsung has also made bonus payments conditional on the company achieving profit milestones.

Samsung which It recently reached a valuation of $1 trillionIt is the largest company in South Korea, accounting for about a quarter of the country’s exports. Saw its latest earnings report An eight-fold increase in profitsthanks largely to sales of its memory chips. Union members still have to vote on the agreement, but a union leader said so Reuters He expects it to be approved.