Seoul: Industry Minister Kim Jung-kwan announced Thursday that the government may invoke emergency arbitration should labor unions at Samsung Electronics Co. proceed with a planned strike next week. This statement follows the collapse of government-led mediation talks on Wednesday, where labor and management were unable to reach an agreement on performance-based bonuses related to the company's AI-related semiconductor business.
According to Yonhap News Agency, Kim expressed his concerns on X, formerly known as Twitter, regarding the unions' intention to begin a full-scale strike next Thursday. He urged both parties to return to the negotiating table promptly. "Considering the seriousness of the matter and the unimaginable ripple effects, a strike must be prevented under any circumstances," Kim emphasized. "As industry minister, I believe emergency arbitration would be unavoidable if a strike occurs."
The labor ministry, under labor law, has the authority to invoke an emergency adjustment measure, which can suspend strike action for up to 30 days if it is likely to cause significant harm to the national economy or disrupt citizens' daily lives. Kim warned that a strike could result in irreversible economic damage, highlighting Samsung's semiconductor business as a critical growth engine for the country. He noted that disruptions to wafer processing alone could lead to losses of up to 100 trillion won (approximately US$66.98 billion) and severely impact around 1,700 partner firms. Broader consequences could include a decline in trust in South Korea within global supply chains and job losses.
Labor Minister Kim Young-hoon also encouraged dialogue between labor and management. He wrote on X, "There is no company without workers, and no labor union is established to destroy a company. If a strike itself is not the ultimate goal, it must eventually end through negotiations."
The National Labor Relations Commission has officially requested that Samsung's labor and management participate in another round of follow-up mediation talks scheduled for Saturday.