Samsung’s appliance employees intend to hold a rally regarding the bonuses awarded to chip division workers.

      Workers involved in the assembly of Samsung's phones, televisions, and washing machines are poised to publicly express their discontent. Their union has announced that thousands of them plan to convene near the company's headquarters in Suwon on July 16 to protest the bonuses awarded to their colleagues in the semiconductor division. This grievance has been simmering since the semiconductor pay agreement was established in May, with an expected turnout of between 2,000 and 3,000 participants.

      The reasoning behind their frustration is straightforward. Employees in Samsung’s Device eXperience division, which produces the products most consumers interact with, are set to receive a 2026 bonus of approximately 6 million won (around $3,900) in treasury shares. In contrast, semiconductor division workers could receive bonuses up to 600 million won, creating a disparity of about one hundred to one between these two sectors of the same company, a discrepancy that is hard to rationalize.

      The semiconductor employees secured their substantial bonuses through a different union and negotiation, which resulted in a significant agreement in Korean labor history. Samsung committed in writing to allocate a fixed percentage of semiconductor operating profits—approximately 10.5 percent—for special bonuses, marking only the second occasion a major Korean corporation has established a percentage profit-sharing commitment in a binding contract.

      While this was a significant achievement for those who negotiated it, employees in the other division felt excluded from the narrative. The substantial rewards for semiconductor staff are understandable, given that this division generates the bulk of Samsung's profits, largely driven by high-bandwidth memory chips used in AI data centers, and the union advocated strongly for their share.

      Previously, chip workers had been offered an average bonus of about $340,000 while threatening an 18-day strike during a crucial memory shortage, which Samsung could not afford. Their leverage was potent, and they capitalized on it.

      Conversely, workers in the appliance and consumer electronics segment lack such bargaining power, which is a central aspect of the upcoming rally. Their division is profitable yet stable, lacking the clout to threaten the company’s operations.

      The Donghaeng union, representing the non-chip workers, has attempted legal action, seeking to prevent a company-wide vote on the bonus structure, but this did not halt the agreement, prompting the planned demonstration as the next step.

      The protesters are advocating for a revised allocation that recognizes the AI profit as a benefit earned by the entire company rather than just a reward for one division. Samsung maintains that the chip bonus is a reflection of the semiconductor division's contributions, a rationale that may be logical on paper but is challenging to communicate effectively in the workplace.

      This dispute has also garnered broader attention, with policymakers noting the scale of the chip bonuses as a potential inflation risk in a country where Samsung's payroll influences economic figures.

      While the rally is unlikely to alter the established 2026 bonuses, its purpose is to frame the discussions for future negotiations and to remind Samsung that a divided workforce presents both management and financial challenges.

      The company has asserted that its special compensation package for chip employees surpasses industry standards; however, this assertion is perceived differently based on which division employees belong to. The expectation of record profits was anticipated to be the uncomplicated aspect.

      Whether the demonstration remains a symbolic gesture or escalates into a more impactful movement will depend on Samsung's forthcoming proposals. For now, thousands of individuals who manufacture the company’s most conspicuous products are preparing to assemble outside its headquarters to assert that they, too, contributed to the successful year.