Samsung Electronics and its labor union held late-night negotiations on Tuesday to prevent a planned total strike [1].
The outcome of these talks determines whether a massive disruption to the production of the global tech giant will occur. A total strike is currently scheduled for May 21 [1].
Mediation began at 10 a.m. on May 12 in Seoul [1]. The sessions lasted more than 14 hours, extending past midnight [1]. The talks were conducted under the mediation of the Ministry of Employment and Labor’s Central Labor-Management Mediation Committee [1, 2].
At the center of the dispute is the funding and institutionalization of performance bonuses. The Samsung Electronics branch of the Chogigongnojo labor union, led by Choi Seung-ho, is demanding a performance-bonus pool equal to 15% of operating profit [3]. The union also seeks the removal of a cap on these payments [3].
Management has not agreed to these terms. Company leadership continues to hold to a 10% profit-share [1]. Additionally, management has not agreed to institutionalize the bonus system, a key point of contention for the union.
Choi Seung-ho said the company continues to stick to the 10% figure and repeats its position that it cannot provide for the non-memory sector [1]. Despite the tension, a union official said the goal was to end the dispute today [1].
The deadline for the total strike is now eight days away [1]. The parties are attempting to bridge the five percent gap in profit-sharing demands before the May 21 deadline [1, 3].
“The company continues to stick to the 10% figure”
The standoff reflects a growing trend of labor institutionalization within Samsung, which has historically avoided strong union activity. If the 5% gap in profit-sharing and the issue of bonus institutionalization are not resolved, a total strike could disrupt critical semiconductor and electronics supply chains during a volatile period for the global tech market.
