Samsung Electronics and the South Korean government have jointly urged the labor unions at the world’s leading memory chipmaker to recommence crucial wage negotiations. This comes after government-mediated discussions concerning the tech giant’s workforce collapsed earlier this week.
In a widely perceived last-ditch effort to avert a significant strike slated for next Thursday, the South Korean tech giant dispatched an official document to its two prominent labor unions.
Previously, two days of government-led mediation talks concluded without resolution on Wednesday. Both labor and management sides remain deeply divided, primarily over performance-based bonuses. These bonuses are specifically tied to the company’s escalating earnings from artificial intelligence (AI) advancements, particularly during the current semiconductor industry upcycle.
Following this impasse, the National Labor Relations Commission intervened on Thursday, urging both parties to reconvene for an additional round of government-mediated discussions scheduled for Saturday.
However, the labor union firmly reiterated its stance, asserting it has no intention of participating in further dialogue unless its core demands are definitively addressed.
“Without the institutionalization of bonus payments and enhanced transparency, there is no valid reason to continue these discussions,” stated Choi Seung-ho, who leads Samsung Electronics’ largest labor union.
Earlier, Choi revealed that approximately 41,000 unionized Samsung workers had indicated their intent to participate in the proposed 18-day general strike, cautioning that this figure could potentially exceed 50,000.
The union’s demands include fixed performance bonuses, specifically requesting an amount equivalent to 15 percent of the operating profit generated by Samsung’s highly successful semiconductor division, coupled with the complete removal of the existing payout cap.
In contrast, management has countered by proposing to retain the current payout cap, while simultaneously offering a one-time special compensation package specifically for employees within the critical semiconductor sector.
