Sejong: Samsung Electronics Co. and its labor union are set to resume government-led mediation talks on Monday, merely three days before a significant planned strike, according to company and union officials. The meeting will occur at the National Labor Relations Commission's office in Sejong, located approximately 110 kilometers south of Seoul, following the breakdown of earlier mediation talks last Wednesday. According to Yonhap News Agency, the company's largest labor union is preparing for an 18-day strike starting next Thursday, which threatens to disrupt production at the world's leading memory chipmaker. The union has indicated that over 46,000 members are prepared to participate in the strike, highlighting the high stakes of the negotiations. The mediation is viewed as a crucial attempt to resolve the deadlock concerning bonus payouts. The core issue lies in the disagreement between labor and management over performance-based bonuses linked to earnings from the company's artificial intelligence-rela ted semiconductor operations amidst the ongoing memory supercycle. In a recent development, Samsung Electronics replaced its chief negotiator Vice President Kim Hyung-ro at the union's request. Yeo Myung-koo, head of the Device Solutions division's People Team, will now lead the negotiations. On Saturday, Samsung Electronics Chairman Lee Jae-yong publicly apologized for the internal issues, urging unity within the company. Chairman Lee stated, "Now is the time to wisely gather our strengths and move in one direction," as he addressed the media at Gimpo International Airport in western Seoul upon returning from an overseas business trip. He expressed regret for causing concern among global customers due to the company's internal disputes, demonstrating his commitment by bowing multiple times. Union leader Choi Seung-ho responded by emphasizing that trust in the company had eroded, leading employees to join the union. He urged for efforts to rebuild trust during the upcoming talks. The union is demanding fi xed performance bonuses amounting to 15 percent of the operating profit from the semiconductor division, alongside the removal of the payout cap. Conversely, management has suggested maintaining the current excess profit incentive system, with bonuses calculated based on either 10 percent of operating profit or economic value added (EVA). Additionally, the company has proposed introducing a special compensation system to foster a more flexible incentive structure, aiming to address the concerns raised by the union.
