Samsung Elec fails to clinch deal with union, major strike to begin on Thursday

Samsung Electronics' management and its labour union failed to reach a deal on Wednesday, setting the ‌stage for ⁠48,000 ⁠workers to walk off the job on Thursday, threatening the health of South Korea's economy and likely disrupting the global supply of semiconductors.

Under intense pressure from the government ⁠and business ‌groups to avert a strike, the two sides had ⁠sought to hash out a deal on bonus payments before the 18-day strike begins.

Samsung said in a statement that the union had made unacceptable demands and that accepting them would have ‌shaken the company's fundamental principles.


The union demanded that Samsung abolish a cap ⁠on bonuses that stands at 50% of annual salaries, allocate 15% of annual operating profit to bonuses and that these changes be formalised beyond one year.