'Many employees are leaving for SK hynix': 40,000 Samsung workers are marching outside its factories to protest pay levels

Samsung is never far from the headlines these days, as it's the biggest manufacturer of DRAM chips, a crucial electronics component that's difficult to procure in the face of massive AI server demands. This has led to record financial figures, with the company estimating an eight times profit increase in its most recent earnings guidance documents.

But while those glowing figures certainly put the company in an enviable financial position, tens of thousands of Samsung workers are now protesting outside of a South Korean factory complex, demanding fairer pay (via Reuters).

The second-biggest South Korean memory manufacturer, SK hynix, is said by the Samsung Electronics Labor Union (SELU) to now pay its employees over two-thirds more in bonuses, and as a result, an estimated 40,000 Samsung workers have taken to the streets.

The union is demanding a 7% increase in base salaries, and that 15% of annual operating profit be allocated as bonus pay—alongside more transparency around salary calculations, and the removal of the current 50% base salary bonus cap.

The SK hynix bonus increases are a direct result of previous union demands for fairer pay in September of last year, which appears to have influenced the Samsung protests. SELU members are now estimated to number around 90,000, which would represent over 70% of Samsung's South Korean workforce.

Speaking to Reuters, Samsung logistics employee and now-protestor Song Yong-gi said: "In reality, many employees are leaving for SK hynix. At the end of the day, more than 90% of employees work for pay, and the compensation gap has become so wide that it's driving these moves."

Reuters also reports that the black vest-clad protestors have been observed walking over a large banner depicting the faces of the company's co-CEO, Chairman Jay Y. Lee, and other Samsung executives.

Samsung has reportedly said that it would make efforts to reach a swift agreement with the protestors. An unnamed company official has also been quoted as saying that production halts as a result of "even a single strike" could take years to recover from.

And a full strike appears to be the protestor's next move. A planned 18-day strike is said to be due to begin on May 21, unless demands are met. Here's hoping that a reasonable solution can be found before then.