SEOUL — Samsung Electronics and South Korean labor officials are urging unions at the world’s largest memory chipmaker to return to wage negotiations after government-mediated talks broke down earlier this week.
Samsung sent an official document Thursday to its two major labor unions in what is being viewed as a last effort to avoid a strike scheduled for next Thursday.
Two days of government-led mediation ended Wednesday without an agreement, as labor and management remained divided over performance-based bonuses tied to the company’s artificial intelligence-related earnings during the current semiconductor upcycle, according to Yonhap News Agency.
South Korea’s National Labor Relations Commission also called on both sides to hold another round of government-mediated talks Saturday.
The union, however, rejected further discussions unless its core demands are addressed.
“There is no reason to continue the dialogue without the institutionalization of bonus payments and transparency,” said Choi Seung-ho, head of Samsung Electronics’ largest labor union.
Choi previously said about 41,000 unionized workers had expressed their intention to join a planned 18-day general strike. He said participation could rise to more than 50,000 workers.
The union is seeking fixed performance bonuses equal to 15% of operating profit generated by Samsung’s semiconductor division, along with the removal of the payout cap.
Management has proposed keeping the cap while offering a one-time special compensation package for employees in the semiconductor business.
The labor dispute comes as Samsung benefits from strong demand for artificial intelligence memory. The company posted a record 57 trillion won, or about $38.2 billion, in operating profit for the first quarter.
South Korea’s senior economic and financial policymakers have called for a swift resolution, warning that a strike at Samsung Electronics could have broader implications for the country’s economy during a semiconductor supercycle.
Finance Minister Koo Yun-cheol and other financial authority leaders raised concerns about the potential impact of a walkout during a meeting on the labor dispute, according to the Ministry of Finance and Economy. (Source: IANS)
