South Korea Samsung ElectronicsLabor negotiations at Samsung Electronics continue, with both sides holding a second round of talks on reforms to the bonus system, attempting to reach an agreement before a large-scale strike on Thursday (May 21). South Korean officials noted that while labor-management differences have narrowed somewhat, key gaps remain.
Samsung Electronics' labor and management began the latest round of negotiations on Monday (18th) regarding a bonus reform plan. The second day of negotiations (19th) was hosted by the South Korean National Labor Relations Committee, with both sides meeting at the government building. Committee Chairman Park Soo-geun stated that if the two sides cannot reach a settlement on their own, they will consider proposing a mediation plan, and emphasized that some issues are "gradually narrowing their differences."
The union demanded the removal of the cap on bonuses not exceeding 50% of annual salary and advocated for including 15% of annual operating profit as a fixed percentage of employee bonuses in formal contracts. The employer, on the other hand, offered to allocate approximately 9% to 10% of profits as bonuses if the company's annual revenue exceeded 200 trillion won, but refused to remove the current cap.
Further reading｜Samsung union to launch strike on May 21; union leader issues first apology: hopes to restart labor-management dialogue
This controversy is also influenced by the wage gap within the industry. SK Hynix has adjusted its compensation system in recent years, resulting in significantly higher bonuses for its employees compared to Samsung, which has sparked discontent among Samsung's labor union and further exacerbated labor-management tensions.
If negotiations break down, approximately 5 employees are expected to launch an 18-day strike starting on the 21st, potentially impacting semiconductor production lines and the global supply chain. The Suwon District Court in South Korea has already issued partial injunctions, requiring the strike not to affect production operations; otherwise, the union could face fines of up to 1 million won per day.
On the other hand, South Korean President Lee Jae-myung also posted on social media, calling for equal respect for corporate management rights and labor rights, and emphasizing that both sides need to seek a balance through rational negotiation. Negotiations between labor and management are currently ongoing.
