About 48,000 workers at Samsung Electronics are set to begin a strike on Thursday following the breakdown of talks over bonus payments, raising concerns over potential disruptions to global semiconductor supply chains and pressure on South Korea’s economy.
The industrial action comes after negotiations between management and labour representatives ended without agreement, with union leaders saying discussions stalled over unresolved issues linked to bonus structures.
However, hopes for a resolution remain as talks resumed on Wednesday afternoon under the mediation of Labour Minister Kim Young-hoon.
Union leader Choi Seung-ho told reporters that while a final proposal from the National Labor Relations Commission had been accepted, the strike would proceed due to management’s refusal to agree on one remaining key demand.
“I would like to apologise to the public for not being able to produce a good result despite making as many concessions as possible,” he said, adding that efforts to reach a deal would continue even during the strike.
Samsung, in its response, accused the union of making “unacceptable demands,” particularly regarding bonuses tied to loss-making units. The company argued that meeting such demands would undermine core management principles.
Despite the dispute, Samsung shares edged up slightly, though they remain down for the week. Investors are reportedly more concerned about the long-term impact of rising labour costs than the immediate disruption from the strike.
Analysts warn that prolonged industrial action at one of the world’s largest chipmakers could affect global semiconductor supply chains, depending on how quickly negotiations are resolved.
