Samsung Electronics Co. (KS:005930) and its largest labor union are scheduled to resume high-stakes negotiations on Monday in a critical bid to avert a looming strike.
First reported by Bloomberg News, the upcoming talks regarding wages and bonus structures come after South Korea’s Prime Minister warned that a production shutdown could inflict severe damage on the national economy.
Management and union representatives at the world’s largest memory chipmaker are meeting at a time when the company’s operating profits have soared, driven by surging global artificial intelligence infrastructure demand.
The government-mediated session will feature participation from the head of the state labor relations commission. The meeting takes place just three days before the union’s May 21 deadline, after which workers plan to stage an 18-day walkout if an agreement is not reached.
Prime Minister Kim Min-Seok addressed the nation on Sunday, urgently requesting both sides to achieve results during the mediation, calling it virtually their last chance.
Kim estimated that a labor action halting the Samsung chip factories could cost up to 1 trillion won ($668 million) for every single day of the shutdown.
He also signaled for the first time that the government would pursue all available measures, including emergency powers, to protect the broader economy if the strike becomes a reality.
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Amid the escalating tensions, Samsung Electronics Chairman Jay Y. Lee issued a rare weekend apology for the internal friction. Returning from an overseas trip, Lee emphasized unity, stating that union members and management are part of the same corporate family.
Prior government-mediated talks broke down earlier this month due to a significant gap between worker demands and executive offers.
The labor group is pushing to eliminate existing bonus caps, requesting that 15% of operating profit be allocated to worker bonuses and formalized in employment contracts.
Samsung executives have countered with a proposal to allocate 10% of operating profit alongside a one-time special compensation package, arguing that the union’s current baseline demands would be difficult to sustain over the long term.
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