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.
Israel said it struck military targets in western and central Iran on Monday, even after U.S. President Donald Trump reportedly told Israeli Prime Min...
Armenia's ruling Civil Contract party is leading in a parliamentary election with 54.44% of the vote, according to early voting results from Armenia's...
A powerful earthquake struck off the southern Philippine island of Mindanao on Monday (8 June), killing at least 3 people and triggering tsunami warni...
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 8 June, covering the latest developments you need to know....
The results of Armenia’s parliamentary elections will determine the makeup of the National Assembly and shape the country's political direction for...
Armenia's ruling Civil Contract party is leading in a parliamentary election with 54.44% of the vote, according to early voting results from Armenia's electoral commission that were broadcast on public TV.
A powerful earthquake struck off the southern Philippine island of Mindanao on Monday (8 June), killing at least 3 people and triggering tsunami warnings across the region.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 8 June, covering the latest developments you need to know.
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.
Counting is underway in Armenia's elections. The results of the vote are set to determine the political direction of the country of three million people for the next few years. Prime Minister Nikol Pashinyan is hoping to fend off challenges from several pro-Russia candidates to secure a third term.
Armenian authorities arrested six candidates from the pro-Russian Strong Armenia bloc on Saturday, one day before voters were due to take part in parliamentary elections.
More than 6,000 people gathered outside a vote-counting centre in Seoul on Friday night, demanding this week’s local elections be repeated after ballot shortages left some voters unable to cast their ballots.
Azerbaijan's Foreign Ministry has confirmed the number of casualties its citizens suffered as a result of the 5 June drone attacks on the cargo ships Natra and Zircon in the Sea of Azov. In a statement, it said four Azerbaijani citizens were killed and four others were injured.
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.
A powerful earthquake struck off the southern Philippine island of Mindanao on Monday (8 June), killing at least 3 people and triggering tsunami warnings across the region.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 8 June, covering the latest developments you need to know.
The Iranian national football team is set to arrive in North America for the World Cup after finally securing travel documents, but a dispute over U.S. visa approvals continues to cast a shadow over the country's tournament preparations.
At least a dozen people were wounded, two critically, on Saturday (6 June) in Toledo, Ohio, as two shooters traded gunfire, police said.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 7 June, covering the latest developments you need to know.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment