Overview
- Samsung’s mediation with its largest union broke down early Wednesday after a 17-hour session, and leaders say a lawful 18-day strike will run May 21 to June 7 with more than 41,000 workers pledged and participation possibly topping 50,000.
- The core fight is over performance bonuses, with the union seeking 15% of operating profit, removal of a 50% payout cap, and a fixed formula in contracts, while management proposed 10% plus a one-time special payment.
- Following Wednesday’s collapse, the prime minister convened an emergency meeting and finance officials on Thursday urged a prompt settlement as the government weighs emergency arbitration, a seldom-used tool that can pause strikes for up to 30 days.
- The Suwon District Court held a second hearing Wednesday on Samsung’s request to curb parts of the walkout, with a ruling expected by May 20, and union leaders say they will not occupy production lines or use violence.
- Investors whipsawed on the risk to chip output, with Samsung’s market value down as much as $66 billion intraday before rebounding after officials’ assurances, and analysts and union estimates warn an 18-day stoppage could cost about 30 trillion won as wafer runs are vulnerable to even short interruptions.