Samsung Electronics’ union has confirmed that it will move forward with a planned strike after management rejected a proposal mediated by the government. The strike, involving nearly 48,000 workers, is scheduled to last for 18 days and is centered around disagreements regarding performance-based bonuses.
Despite efforts to resolve the issue through government-mediated talks, the deadlock between labor and management persists. The dispute primarily revolves around performance bonuses linked to the company’s AI-related semiconductor business amid a global memory supercycle.
While Samsung management expressed regret over the situation and called for continued negotiations, the union remains firm in its demands. The union is pushing for fixed performance bonuses equivalent to 15 percent of the semiconductor division’s operating profit and the elimination of payout caps.
The South Korean government is closely monitoring the situation, concerned that a prolonged strike could negatively impact the country’s export-driven economy. With semiconductor exports representing a significant portion of South Korea’s outbound shipments, there are fears of potential disruptions to global companies reliant on the country’s semiconductor supply chain.
