Samsung Electronics' union plans for 48,000 workers to walk off the job on Thursday (21 May) after efforts to clinch a deal on bonus payments fell through, threatening the health of South Korea's economy and the global supply of semiconductors.
Union leader Choi Seung-ho said that the 18-day strike would go ahead as management had not come round on one remaining sticking point in talks mediated by the government.
"I want to make clear that we had accepted the final proposal presented by government mediator," he told reporters.
"We express deep regret and feel disappointed but the union plans to go ahead with the strike according to the law," Choi said.
Samsung Electronics said in a statement that the union had insisted on "unacceptable demands" that included the size of bonuses for loss-making units.
"The reason an agreement could not be reached .... is that accepting the labor union's excessive demands would undermine the fundamental principles of company management," it said.
Its shares were down about 3% after the news.
South Korea's government threatened at the weekend to step in and order emergency arbitration, citing the adverse impact the strike could have on the economy.
The measure, which has been rarely employed, would prevent the strike from going ahead for 30 days while the government mediates talks.
But a South Korean government official said on Wednesday that talk of emergency arbitration is premature and that there was still time for dialogue.
South Korea's labour commissioner Park Soo-keun, who mediated the talks, said that the government is open to restarting the mediation process "anytime".
Samsung accounts for almost a quarter of the country's exports. It is also the world's largest memory chip maker and production disruptions could dent global supply at a time when the artificial intelligence (AI) boom has caused shortages.
The union had demanded that Samsung abolish a cap on bonuses that stands at 50% of annual salaries, allocate 15% of annual operating profit to bonuses and that these changes be formalised beyond one year.
The United Nations has warned that Afghanistan's relative stability may not be sustainable unless the country's current authorities change policies af...
Iran and Israel said on Monday (8 June) they had halted attacks on each other following an appeal from U.S. President Donald Trump, as Axios reported...
A Sudanese man has been arrested over a knife attack in Belfast that left a man seriously injured and prompted calls online for a protest after footag...
Türkiye welcomed Armenia's parliamentary election result on Monday, urging Yerevan to take "bolder steps" towards regional peace and diplomatic norma...
A Paris court has dismissed criminal charges against New Caledonian pro-independence leader Christian Téin, ending a high-profile case that drew inte...
Iran and Israel said on Monday (8 June) they had halted attacks on each other following an appeal from U.S. President Donald Trump, as Axios reported that Trump had privately told Benjamin Netanyahu “be careful, or you will be on your own very soon”.
A Sudanese man has been arrested over a knife attack in Belfast that left a man seriously injured and prompted calls online for a protest after footage of the incident circulated widely on social media.
Türkiye welcomed Armenia's parliamentary election result on Monday, urging Yerevan to take "bolder steps" towards regional peace and diplomatic normalisation.
Apple has unveiled a long-awaited upgrade to Siri, aiming to close the gap with technology rivals and emerging artificial intelligence firms in an increasingly competitive market.
Armenian Prime Minister Nikol Pashinyan's Civil Contract party has won the Armenian elections, picking up nearly half the vote. With a majority in parliament, Pashinyan is set for a third term as Prime Minister. But an opposition politican has said he will challenge the election results.
The results of Armenia’s parliamentary elections will determine the makeup of the National Assembly and shape the country's political direction for the foreseeable future. But in Armenia, the final result is not decided by vote percentages alone. Here's how it works.
Barcelona is preparing to mark a historic milestone in the legacy of architect Antoni Gaudí as Pope Leo XIV visits the city this week to inaugurate the Tower of Jesus Christ at the Sagrada Família basilica, almost exactly 100 years after the visionary architect’s death.
Iran and Israel have halted strikes on each other, but Tehran has warned it will recommence attacks if Israel continues military action in Lebanon. U.S. President Donald Trump and Lebanese President Joseph Aoun have meanwhile made pleas for peace.
Iran and Israel said on Monday (8 June) they had halted attacks on each other following an appeal from U.S. President Donald Trump, as Axios reported that Trump had privately told Benjamin Netanyahu “be careful, or you will be on your own very soon”.
A Sudanese man has been arrested over a knife attack in Belfast that left a man seriously injured and prompted calls online for a protest after footage of the incident circulated widely on social media.
A Paris court has dismissed criminal charges against New Caledonian pro-independence leader Christian Téin, ending a high-profile case that drew international attention and renewed scrutiny of France’s handling of independence movements in its overseas territories.
Russian drone and missile attacks on Ukraine's north-eastern Kharkiv region killed a pregnant woman and two other people, Ukrainian officials said on Tuesday, as renewed diplomatic efforts to end the war continued.
At least 37 people have died after a powerful earthquake struck the southern Philippines, as rescuers continued searching a collapsed commercial building for survivors in General Santos on Tuesday.
The Football Federation Islamic Republic of Iran (FFIRI) has accused the U.S. of preventing Iranian supporters from attending the country's World Cup matches after its allocation of tickets was withdrawn just days before the tournament begins.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment