Samsung Electronics and its South Korean labor union will participate in fresh government-mediated negotiations Monday as they work to prevent a potential strike at the global technology company, which represents nearly 25% of South Korea’s total exports.
These discussions come after initial government-facilitated talks regarding compensation and bonus programs failed last week, with a planned work stoppage set to start Thursday at the world’s biggest memory chip manufacturer.
Government leaders in South Korea, including the prime minister and finance minister, have expressed alarm about the possibility of a strike, cautioning that such action could seriously threaten economic expansion, export performance, and financial market stability.
South Korean President Lee Jae Myung posted on social media Monday that business management authority should receive equal respect with worker rights within the nation’s free-market system.
“In South Korea, which has adopted a liberal democratic order and capitalist market economy, labour should be respected as much as businesses, and corporate management rights should be respected as much as labour rights,” Lee wrote on X.
He noted that employees deserve appropriate payment for their work, while investors who accept financial risks and potential losses through their investments also merit a portion of company profits.
South Korean Prime Minister Kim Min-seok announced Sunday that officials would explore every available option, including emergency arbitration measures, to stop a strike from occurring.
An emergency arbitration directive, which the labor minister can implement when officials determine a labor dispute may damage the economy or public welfare, instantly blocks workplace action for 30 days while the National Labor Relations Commission handles mediation and arbitration procedures.
The union stated Sunday it would resist arbitration pressure and reject any compensation agreement if the company presents a worse offer.
Following last week’s failed negotiations, leadership from Samsung’s semiconductor unit appealed to the union to avoid striking, referencing worries from important chip clients including Nvidia, media outlets reported.
The executives indicated some customers suggested they might briefly halt shipment acceptance during a strike due to quality assurance concerns, according to reports citing a meeting attendee.
Samsung chose not to provide comments on this issue.
Samsung Electronics’ stock price increased 0.7% during morning trading, while the benchmark KOSPI index dropped 2.5%.
