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.
Overnight U.S. strikes caused blackouts in southwestern Iran and hit the northwestern city of Tabriz for the first time. Separately, a U.S. soldier di...
Iran said it has received overtures from regional mediators aimed at de-escalating the ongoing military standoff between Tehran and Washington....
Music icons Madonna, Shakira, BTS and Burna Boy performed during the FIFA World Cup final halftime show, bringing a Super Bowl-style spectacle to foot...
Overnight U.S. strikes caused blackouts in southwestern Iran and hit the northwestern city of Tabriz for the first time. Separately, a U.S. soldier died in northern Iraq during a controlled detonation of an unexploded Iranian drone.
The Philippines and China traded accusations on Monday after their vessels clashed at the disputed Second Thomas Shoal in the South China Sea. Manila said a Philippine sailor was injured, while Beijing claimed Philippine forces started the confrontation.
Armenian authorities have launched a criminal investigation into allegations that supporters of the Strong Armenia party offered bribes to voters in exchange for their support.
Yemen's Iran-aligned Houthi movement has announced a naval blockade on Saudi Arabia, raising fears of further regional escalation and possible disruption to global energy supplies and key shipping routes.
Lionel Messi's Argentina face Spain in World Cup final with history on the line. Spain and Argentina meet on Sunday in the 2026 World Cup final, bringing together the reigning champions of Europe and South America.
At least six people were killed and 21 others injured after two earthquakes struck Peru's central Junín region, destroying dozens of homes and triggering a major emergency response.
The United States launched fresh strikes against Iran after two U.S. service members were killed in Jordan. U.S. President Donald Trump paid tribute to the fallen troops as Iran warned of further escalation.
Overnight U.S. strikes caused blackouts in southwestern Iran and hit the northwestern city of Tabriz for the first time. Separately, a U.S. soldier died in northern Iraq during a controlled detonation of an unexploded Iranian drone.
Lebanese President Joseph Aoun will make his first trip to the White House this week to present a plan to U.S. President Donald Trump on how to disarm Iran-backed militant group Hezbollah and secure Israel's withdrawal from Lebanon.
Music icons Madonna, Shakira, BTS and Burna Boy performed during the FIFA World Cup final halftime show, bringing a Super Bowl-style spectacle to football's biggest stage. More than 80,000 fans at MetLife Stadium watched the landmark performance.
The Philippines and China traded accusations on Monday after their vessels clashed at the disputed Second Thomas Shoal in the South China Sea. Manila said a Philippine sailor was injured, while Beijing claimed Philippine forces started the confrontation.
Yemen's Iran-aligned Houthi movement has announced a naval blockade on Saudi Arabia, raising fears of further regional escalation and possible disruption to global energy supplies and key shipping routes.
Thailand plans to complete a 250-kilometre section of a high-speed railway linking the country with China by 2030, as Bangkok strengthens transport links and strategic ties with Beijing.
Azerbaijan has rejected suggestions it played any official role in reported private talks between former German politicians and Russian representatives in Baku, saying the meetings were organised independently.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment