Samsung Electronics and the government are calling on labour unions at the world’s largest memory chipmaker to restart wage negotiations following the breakdown of government-mediated discussions earlier this week. The tech giant has sent an official communication to its major labour unions in a final attempt to prevent a planned strike set for next Thursday.
After two days of government-led mediation talks failed to reach an agreement, the National Labor Relations Commission has urged both parties to reconvene for further discussions on Saturday. However, the union has stated that it will not engage in dialogue unless its key demands, particularly regarding bonus payments and transparency, are met.
Choi Seung-ho, the head of Samsung Electronics’ largest labour union, emphasized the union’s stance, indicating that over 41,000 unionized workers are prepared to join the proposed 18-day general strike. The union’s demands include fixed performance bonuses equal to 15 percent of the semiconductor division’s operating profit and the elimination of the payout cap.
In response, management has suggested maintaining the payout cap while offering a one-time special compensation package for semiconductor sector employees. Samsung Electronics recently reported a record operating profit of 57 trillion won (US$38.2 billion) for the first quarter, driven by robust demand for AI memory products.
South Korea’s top economic policymakers have also emphasized the importance of swiftly resolving the labor dispute at Samsung Electronics to avoid potential economic repercussions from a worker strike. Finance Minister Koo Yun-cheol and other financial authorities have highlighted the risks to the country’s economy posed by a semiconductor industry supercycle.
