(RTTNews) - Samsung Electronics Co. Ltd.'s (SSNLF) more than 47,000 workers are likely to begin an 18-day strike on Thursday following the failure of wage negotiations between the company and its labor union.
The South Korean government-mediated wage negotiations' core issue remained bonus disputes between the company and the union. The talks involve union's demands over performance-based bonuses and the company's pay structure, as well as the removal of bonus payout caps and greater transparency.
As per reports, the union had agreed to the mediation proposal from South Korea's National Labor Relations Commission, but Samsung rejected it, and asked for more time for negotiations.
Meanwhile, Samsung Electronics stated that no decision has been made. According to the firm, accepting the labor union's excessive demands could undermine the fundamental principles of company management.
Choi Seung-ho, the spokesperson for the labor union reportedly said, "We express deep regret that the post-mediation process was terminated due to the delay in management's decision-making.'
It is expected that that the disrupt in Samsung's memory and AI chip production following the days-long strike would have a massive impact on the company's operating profit and shipments.
Amid the developments, there is a speculation of government-forced arbitration as South Korean Finance Minister Koo Yun-cheol and President Lee Jae-Myung reportedly stated that a strike would pose a major risk to national economic growth and exports.
In South Korea, Samsung shares closed Wednesday's trading at 276,000.00 won, up 0.18 percent.
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