Samsung Electronics has reached out to its South Korean workers’ union requesting renewed salary negotiations following the breakdown of government-facilitated discussions, according to a union official who referenced correspondence from the tech giant.
South Korea’s Labour Commission has encouraged both parties to participate in another government-mediated discussion session scheduled for Saturday, hoping to prevent a prolonged work stoppage.
Union representative Choi Seung-ho responded to the company’s letter by stating, “There is no reason to continue the dialogue without institutionalisation and transparency,” highlighting the union’s push for changes to Samsung’s bonus compensation system.
Samsung Electronics has not yet provided a response to requests for comment.
Frustrated by what they describe as a substantial difference in bonus compensation compared to rival chipmaker SK Hynix, the union has scheduled an 18-day work stoppage beginning May 21 unless their requests are fulfilled.
Finance Minister Koo Yun-cheol emphasized Thursday that preventing a strike is essential, warning it would pose serious threats to South Korea’s economic expansion, export performance and financial markets.
The nation’s economy has grown more reliant on thriving semiconductor exports. Computer chips represented 37% of the country’s export revenue in April, rising from 20% during the same period last year, based on official statistics.
