Seoul: The Samsung labor union is gearing up for a significant strike involving around 48,000 employees of Samsung Electronics, set to commence on Thursday. This action follows unsuccessful negotiations over bonus payments, raising concerns about the potential impact on South Korea's economic stability and the disruption of global chip supply chains.
According to Thai News Agency, negotiations resumed on Wednesday evening, with Labor Minister Kim Yong-hoon stepping in as a mediator, offering some hope for a resolution. Earlier, union leader Choi Seung-ho announced that while the union accepted the final offer from the National Labor Relations Commission chairman, the strike would continue as management had not agreed on the last outstanding issue.
The union president expressed regret for not achieving favorable negotiation outcomes despite compromising on demands, while also affirming their commitment to seeking consensus during the protests. Meanwhile, Samsung maintains that the union's demands, particularly concerning bonuses for loss-making units, are unacceptable and would undermine the company's management principles.
Samsung, a major contributor to South Korea's exports and a leading memory chip manufacturer globally, faces potential disruptions that could escalate chip prices amid an existing shortage fueled by the rise of artificial intelligence. In response, the government may consider an emergency arbitration order to temporarily halt protests, though officials indicate that negotiations are still ongoing and it's premature to discuss such measures.