Samsung pay talks collapse with strike deadline one week away
Samsung Electronics has urged its South Korean labour union to resume pay negotiations, after government-mediated talks collapsed — leaving an 18-day strike from May 21 as a real and immediate threat, Reuters reports.
According to Reuters, Samsung sent a letter to the union proposing a resumption of talks. The union's response was dismissive. "There is no reason to continue the dialogue without institutionalisation and transparency," union representative Choi Seung-ho told Reuters, referring to the union's central demand for an overhaul of Samsung's bonus scheme.
South Korea's Labour Commission has called on both sides to hold another round of government-mediated talks on Saturday in a bid to prevent the strike. Samsung Electronics did not immediately respond to Reuters' request for comment.
The union's complaint centres on what it describes as a significant gap in bonus pay between Samsung and rival chipmaker SK Hynix. If demands are not met, the union has planned a strike lasting 18 days beginning May 21.
The stakes extend beyond Samsung itself. South Korea's Finance Minister Koo Yun-cheol said on Thursday that a strike must be averted at all costs, describing it as a significant risk to the country's economic growth, exports and financial markets, according to Reuters.
The concern is well-founded — semiconductors accounted for 37% of South Korea's total exports in April, up from 20% a year earlier, according to government data cited by Reuters.