Seoul: 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, as confirmed by both company and union officials on Saturday. The mediation session is scheduled to occur at the National Labor Relations Commission's office in Sejong, situated about 110 kilometers south of Seoul. This follows the breakdown of earlier mediation discussions on Wednesday.
According to Yonhap News Agency, the strike organized by the company's largest labor union is scheduled to begin next Thursday and is expected to last 18 days, potentially disrupting operations at the world's leading memory chipmaker. The union has reported that over 46,000 members have shown a willingness to participate in the strike. The upcoming talks are seen as a crucial attempt to resolve a deadlock over bonus payouts.
The primary contention between labor and management revolves around performance-based bonuses, which are tied to earnings from Samsung's artificial intelligence-related semiconductor business amidst the ongoing memory supercycle. In a bid to facilitate negotiations, the company recently replaced its chief negotiator, Vice President Kim Hyung-ro, at the union's request. Yeo Myung-koo, who heads the Device Solutions division's People Team, has been appointed as Kim's successor.
Samsung Electronics Chairman Lee Jae-yong made a public apology on Saturday, expressing regret for the concern caused by the company's "internal" issues and urging for unity within the organization. In response, Choi Seung-ho, the head of the union, stated that employees joined the union due to broken trust in the company and emphasized the need to restore that trust during the forthcoming negotiations.