Samsung facing workers strike after union pay talks crumble

There could be a huge strike at Samsung Electronics as around 48,000 workers are set to walk off the job Thursday.

The strike at South Korea’s largest employer could rattle global semiconductor supplies and the country’s trade-dependent economy.

Government officials have threatened to invoke rarely used emergency powers to force a settlement at Samsung.

The workers union, which represents more than 70,000 workers, says the company has failed to offer adequate compensation despite its soaring profits fueled by the global boom in artificial intelligence.

Labour Minister Kim Young-hoon told reporters that the union had accepted a final proposal presented by their head of the National Labour Relations Commission, but the 18-day strike would go ahead as he said management did not agree on one remaining bargaining point.

Samsung said in a statement that the union insisted on “unacceptable demands” including the size of bonuses for loss-making units.

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

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