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 U.S. and Iran have agreed to 'stand down' and resume technical talks, allowing vessels allowed to move freely under the interim peace deal, a U....
Residents of Caracas woke on Monday (29 June) to a magnitude 4.6 aftershock as rescue teams entered a fourth day of intensive search operations follow...
Turkish President Recep Tayyip Erdoğan and German Chancellor Friedrich Merz held a phone call on Monday to discuss bilateral relations, regional deve...
The Czech government has agreed, under pressure from the country's Constitutional Court, to allow President Petr Pavel to attend next week's NATO summ...
With its EU accession talks frozen and its strategic partnership with Washington suspended, Tbilisi has formalised a new alliance with Astana centred ...
The U.S. and Iran have agreed to 'stand down' and resume technical talks, allowing vessels allowed to move freely under the interim peace deal, a U.S. official said.
Residents of Caracas woke on Monday (29 June) to a magnitude 4.6 aftershock as rescue teams entered a fourth day of intensive search operations following last week's powerful earthquakes in Venezuela.
Turkish President Recep Tayyip Erdoğan and German Chancellor Friedrich Merz held a phone call on Monday to discuss bilateral relations, regional developments and wider global issues, according to Türkiye’s Communications Directorate.
The Czech government has agreed, under pressure from the country's Constitutional Court, to allow President Petr Pavel to attend next week's NATO summit in Türkiye, but has insisted he will not lead the national delegation.
A tanker reported being struck by a projectile in the Strait of Hormuz on Saturday, Britain's maritime security agency said, after the United States and Iran each launched strikes in the worst escalation since they signed their interim peace deal.
Fourteen people were killed on Sunday after a helicopter belonging to Saudi oil giant Aramco crashed in Ras Tanura, according to Saudi state media.
Rescue teams raced on Sunday to find more survivors of the two powerful earthquakes that struck Venezuela this week, with signs of life bringing occasional relief to a grim quest to whittle down a list of tens of thousands missing.
Eleven people were killed when a small plane carrying skydivers crashed near Nancy in eastern France on Sunday, local officials said.
The United States and Iran have agreed to halt strikes against each other, in a potential breakthrough after weeks of escalating tensions. The two sides are expected to meet in Doha on Tuesday to address their dispute over the Strait of Hormuz.
Residents of Caracas woke on Monday (29 June) to a magnitude 4.6 aftershock as rescue teams entered a fourth day of intensive search operations following last week's powerful earthquakes in Venezuela.
The Czech government has agreed, under pressure from the country's Constitutional Court, to allow President Petr Pavel to attend next week's NATO summit in Türkiye, but has insisted he will not lead the national delegation.
A high-level summit in Berlin has brought together policymakers, academics and industry leaders to examine how Europe can deepen ties with the Caucasus and Central Asia as shifting geopolitical realities reshape long-standing regional partnerships.
A coalition of Georgian former ministers, diplomats and security experts has issued an urgent warning to the international community: Russia is not merely occupying Georgia's breakaway regions - it is absorbing them, and the window for a meaningful response is rapidly closing.
Six adults were killed in a shooting at a youth welfare facility in northern Germany on Monday, with police detaining two people, including the suspected gunman.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment