More than 47,000 Samsung Electronics workers are preparing for an 18-day strike after bonus pay talks between the company and its union failed. The strike is scheduled to begin Thursday and will be limited to Samsung’s domestic chip manufacturing plants, raising concerns over already disrupted production of memory chips amid the ongoing shortage.
While the union agreed to arbitration proposed by South Korea’s National Labor Relations Commission (details of which have not been made public), Samsung Electronics’ management rejected the deal without explanation. Nikkei Asia Report.
As part of its demands, the Samsung union is demanding a performance bonus equal to 15 percent of the company’s operating profit and removal of the bonus limit of 50 percent of the annual salary. The collapse of the talks comes at a time of record profits for Samsung, which has established itself as the world’s largest producer of memory chips.
South Korean government officials had urged both Samsung and the labor union to reach an agreement in the days before the strike, with Prime Minister Kim Min-seok reportedly warning that the government could intervene and prevent the strike from proceeding. South Korean law allows “emergency adjustments” to be imposed when disputes could harm the economy or daily life. Samsung is South Korea’s largest company, accounting for about 23 percent of the country’s exports and 26 percent of its total market capitalization. cnbc.
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