Samsung Electronics (OTC:SSNLF) faces a potential strike by its South Korean labor union next week, despite the company offering to restart unconditional wage negotiations. The Korean chipmaker’s shares plunged nearly 9% in Seoul on Friday.
The union has expressed its willingness to engage in new discussions post June 7, but remains firm on its 18-day strike plan starting May 21, potentially disrupting production at the world’s largest memory chipmaker, reported Yonhap News.
The union also warned that over 50,000 workers could walk off the job next week.
According to the report, Samsung proposed keeping its current excess profit incentive system while offering a more flexible bonus structure tied to either 10% of operating profit or economic value added (EVA), along with a new special compensation system. The union, meanwhile, is demanding fixed bonuses equal to 15% of the semiconductor division's operating profit and the removal of payout caps.
Urging the union to recommence talks, Samsung executives have apologized for the discord caused by the labor dispute and committed to an open approach in future negotiations. A meeting between the company’s executives and the union leader at the Pyeongtaek campus is in the pipeline.
