{"text":[[{"start":8.35,"text":"Samsung Electronics workers and management have reached a deal on pay, averting a strike that had threatened to disrupt both the Korean economy and the global artificial intelligence boom."}],[{"start":19.35,"text":"After days of deadlocked talks, a late intervention by Labour Minister Kim Young-hoon brought both sides back to the table, with a deal finally reached at around 10.30pm local time — just 90 minutes before the strike deadline. Korea’s stock market rose more than 7 per cent on Thursday in response. "}],[{"start":40.45,"text":"Choi Seung-ho, the chair of the National Samsung Electronics Union, said that union members would hold a vote before May 27 on the agreement. He then pledged to do his “utmost to help stabilise labour-management relations at Samsung Electronics”. The union asked members to report to work as usual on Thursday."}],[{"start":60.300000000000004,"text":"“With humility, we will work to ensure that this does not happen again and strive to build a more mature and constructive labour-management relationship,” Samsung said on Thursday."}],[{"start":69.7,"text":"The dispute comes at a time of surging demand for semiconductors, especially the advanced high-bandwidth memory chips, made by Samsung and others, that AI companies need to run their data centres. Samsung and local rival SK Hynix hold a near-duopoly in these chips. "}],[{"start":85.60000000000001,"text":"Prices of memory chips have soared in recent months, driven by surging data centre demand and shortages that have squeezed hardware makers worldwide."}],[{"start":94.9,"text":"The dispute had centred on the 70,000-strong union’s demand that workers receive a share of the company’s operating profits. Last year, Hynix committed to paying staff 10 per cent of operating profits annually for 10 years, resulting in large discrepancies in pay between the two chip groups."}],[{"start":111.75,"text":"Under Wednesday’s deal, Samsung semiconductor workers will now receive 10.5 per cent of operating profits. This comes on top of an existing company-wide bonus scheme. "}],[{"start":122.3,"text":"The new bonus pool will be split between division-wide payouts and rewards tied to the performance of individual business units. Workers will also receive an average wage increase of 6.2 per cent."}],[{"start":134.25,"text":"Bonuses hinge on Samsung earning an operating profit of Won200tn ($133bn) each year from 2026 to 2028, and Won100tn thereafter. "}],[{"start":146.95,"text":"Analysts expect Samsung to meet this comfortably, projecting more than Won300tn in operating profit this year."}],[{"start":154.45,"text":"The stakes were also high for Korea. A recent Bank of Korea report predicted an 18-day strike at Samsung would have shaved 0.5 percentage points off GDP growth this year."}],[{"start":166.64999999999998,"text":"Professor Kwon Seok-joon of Sungkyunkwan University said any strike would have been “a meaningful national industrial risk”, as Samsung is “central to Korea’s exports, stock market, and semiconductor supply chain”."}],[{"start":179.24999999999997,"text":"Shares in Samsung, Korea’s most valuable company, rose 7 per cent, with similar gains for the Kospi index. "}],[{"start":186.84999999999997,"text":"A government spokesperson thanked “labour and management for their magnanimous decision for the sake of both the nation and the people”."}],[{"start":195.34999999999997,"text":"Unlike other Korean chaebols such as Hyundai — where strikes and wage battles have long been commonplace — strikes are rare at Samsung. "}],[{"start":203.99999999999997,"text":"Founder Lee Byung-chull once said, “I will not allow unions until the dirt covers my eyes.” "}],[{"start":210.09999999999997,"text":"This changed in 2019 when the group, now led by Lee’s grandson Lee Jae-yong, was caught in a union-busting scandal that led to convictions for executives and an eventual promise to allow collective action."}],[{"start":229.49999999999997,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1779335918_4995.mp3"}