Overview
- Samsung’s largest union said Friday it will proceed with an 18‑day strike from May 21 despite the company’s offer of unconditional talks, and shares fell as much as 5.9% on rising production risk.
- The dispute centers on performance bonuses, with the union seeking a codified 15% share of operating profit and removal of the payout cap, while management proposes keeping the cap and paying roughly 10% with a one‑time special compensation.
- Following Wednesday’s collapse of government‑mediated talks, the Labour Commission asked both sides to meet again Saturday, but union leader Choi Seung‑ho insisted negotiations resume only if Samsung tables a detailed, transparent profit‑sharing plan.
- Samsung has requested a court injunction to limit the strike and a Suwon judge is expected to rule by May 20, while the industry minister warned emergency arbitration could be used to pause walkouts for up to 30 days if economic harm is judged severe.
- Samsung has begun adjusting chip production as fabs require days of pre‑strike slowing and weeks of post‑strike stabilization, with JPMorgan estimating 21–31 trillion won in potential operating‑profit impact and analysts warning customers could shift orders to rivals.