Particle.news
Download on the App Store

Samsung and Union Enter Final Government-Led Talks as 18-Day Strike Nears

A threatened walkout by over 45,000 chip workers could strain global memory supply.

Overview

  • Samsung and its largest union returned to government mediation on Tuesday after Monday’s talks ended without a deal, with the strike scheduled to start Thursday, May 21, and the mediator saying some gaps narrowed.
  • A Suwon court on Monday partially granted Samsung’s injunction, ordering “normal” staffing to protect facilities and prevent wafer or material damage, and set fines of 100 million won per union per day and 10 million per leader for violations.
  • The union said it will proceed with the walkout if no acceptable agreement is reached, even under the court order, while management and labor dispute what counts as “normal” staffing during a strike.
  • The core dispute is over profit‑sharing: the union seeks bonuses equal to 15% of operating profit and the removal of a 50% payout cap, while Samsung proposes roughly 9%–10% and keeping the cap, plus one‑time special rewards.
  • Seoul has warned it may use emergency arbitration that would bar industrial action for 30 days as officials cite potential losses of about 1 trillion won per day and note that chip fabs are sensitive to stoppages that can spoil wafers and take weeks to stabilize.