Samsung Stock Rises as Workers Head to Court Over Pay Deal

TLDR

• A Samsung union representing ~13,000 non-chip workers has filed a court injunction to stop an ongoing vote on a pay deal they say excludes them.
• The vote, covering ~57,000 workers, began Friday and closes Wednesday morning; it needs a simple majority to pass.
• The National Samsung Electronics Union (NSEU), with ~20,000 members, is also boycotting the vote.
• If the vote fails to pass, pay negotiations will restart from scratch.
• Samsung stock in Korea is up ~2.5% Tuesday and has gained about 9% since the deal was announced last week.

Samsung workers are fighting over who gets a piece of the AI-era bonus pool — and it’s now heading to court.

Samsung Electronics Co., Ltd., SMSN.L

A Samsung Electronics union representing workers in the smartphones, TV, and home appliances divisions has filed an injunction with a South Korean court, asking it to block an ongoing worker vote on a pay deal. The union, the Samsung Electronics Co Union (SECU), says it was told it had no right to participate in the vote.

Samsung stock in Korea rose about 2.5% on Tuesday. The OTC-listed SSNLF has climbed roughly 115% year-to-date.

The pay deal at the center of the dispute is tied to bonuses that would primarily benefit workers in Samsung’s semiconductor division. Around 57,000 unionised workers began voting on Friday, with the ballot closing Wednesday morning.

SECU has around 13,000 members and is pushing back against what it sees as an unfair process. The union says it was shut out of the vote entirely despite being affected by the outcome.

A Second Union Also Pulls Out

The National Samsung Electronics Union (NSEU), which represents about 20,000 workers across both chip and non-chip divisions, has also expressed dissatisfaction with the deal. The NSEU says it plans to boycott the vote.

That matters because the deal needs a simple majority of eligible union members in favor, along with sufficient turnout. If those thresholds aren’t met, the entire negotiation process has to restart.

The dispute has exposed a fault line inside Samsung over how bonus gains tied to the AI boom are being distributed. Chip division workers are set to receive large payouts while employees in smartphones and appliances would get far smaller ones.

Shareholders Add to the Pressure

A small group of individual shareholders has also weighed in, saying they will file a lawsuit if the deal passes. They argue parts of the agreement may be unlawful without shareholder approval.

The pay deal itself was brokered with government help to avoid an 18-day strike. Tensions had been building after direct negotiations between Samsung and its unions broke down, raising the prospect of a walkout involving around 48,000 workers.

Samsung’s shares in Korea have gained about 9% since the deal was reached last week. On Wall Street, the average analyst price target for SSNLF is $149.40, pointing to about 6.71% upside from current levels. The consensus rating is Moderate Buy.

Voting concludes Wednesday morning, and the outcome will determine whether the deal holds or talks begin again.

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