SRMED
Englishعربي
Englishعربي
Samsung Electronics and its labor union are heading toward an 18-day strike after last-minute wage talks collapsed, raising the risk of disruption at the South Korean company’s semiconductor operations. The union says it will begin the walkout on May 21 after management and worker representatives failed to reach agreement on pay, performance bonuses and the removal of a cap on bonus payouts.
The breakdown came after several rounds of government-mediated bargaining. According to Yonhap News Agency and other South Korean outlets, negotiators met twice on May 11 and 12 under the Ministry of Employment and Labor, with the final session stretching for 17 hours overnight before ending without a deal. A mediator had said earlier in the week that the two sides had narrowed some differences, but by Wednesday those gaps were still wide enough to derail an agreement.
At the center of the dispute is how much of Samsung’s operating profit should be returned to workers as performance bonuses. The union has demanded that Samsung scrap the current cap and allocate 15% of operating profit to bonuses, with the arrangement written into employment contracts. Management has countered with a proposal for 10% of operating profit, plus a one-time special payment, arguing that the union’s demands would not be sustainable over the long term.
The union says Samsung has not meaningfully responded to its proposals and has signaled that no further talks are planned before the strike begins. South Korean media have reported that roughly 41,000 union members had already said they were willing to join the action, and that the number could rise to more than 50,000. That has prompted concerns about potential losses running into tens of trillions of won if production is interrupted for an extended period.
The dispute matters far beyond the company’s internal pay structure because Samsung is one of the world’s most important memory chip makers. Analysts cited in reporting on the talks have warned that a lengthy stoppage could hit output, strain supply chains and affect customer orders. In the semiconductor business, even short disruptions can be costly because production lines operate continuously and restarting them can take time.
Samsung has expressed regret over the failed negotiations and said it would keep engaging with the union in an effort to avoid the worst-case scenario. South Korea’s government is also watching closely. Reports say officials could consider an “emergency adjustment of industrial action,” a legal step that can temporarily suspend a strike if it is judged to threaten the national economy or daily life. For now, however, both sides appear to be dug in, with the strike set to proceed unless a breakthrough comes at the last minute.