May 13 – Samsung Electronics and its labor union failed to reach a wage agreement after marathon negotiations on Wednesday, heightening the risk of a major strike that could disrupt the company's semiconductor production, including AI chips.
Union leaders said more than 50,000 workers are expected to proceed with a full-scale strike. The "cross-company union," which represents over half of Samsung's employees, held 17 hours of talks with management from 10:00 a.m. on May 12 until 3:00 a.m. on May 13, but the two sides could not bridge their differences.
The union has threatened to launch an 18-day strike starting May 21 if its demands are not met. Earlier mediation efforts by South Korea's labor authorities over two days also ended without resolution.
The core dispute centers on performance bonuses tied to Samsung's surging profits from artificial intelligence. The union is demanding the removal of the existing bonus cap, allocation of 15% of operating profit to employee bonuses, and the inclusion of these terms in the labor contract.
Samsung countered with an offer to allocate 10% of operating profit toward bonuses, supplemented by a one-time special compensation package that exceeds industry standards. Company executives described the union's demands as unsustainable in the long term.
The potential strike comes at a critical time for Samsung, a global leader in memory chips and advanced semiconductors used in AI applications. A prolonged work stoppage could affect production schedules and supply chains.
