Samsung pay deal marks seismic change for South Korea, emboldening unions

SEOUL: The deal Samsung Electronics struck with its union averts a massive strike and gives its memory chip workers eye-popping bonuses. It also opens a Pandora’s box for companies in South Korea – a country known for militant wage-bargaining.

Unionised Samsung workers voted in favour of the government-mediated pact on Wednesday, marking the first big win for a Samsung union. More significantly, it is only the second time that a major South Korean company has agreed in writing to reward workers with a fixed percentage of operating profit.