Seoul: Samsung Electronics Co. and its labor union are set to resume government-led mediation talks on Monday, just days before a major planned strike that threatens to disrupt production at the world's largest memory chipmaker. The negotiations will take place at the National Labor Relations Commission's office in Sejong, following a breakdown in earlier talks last Wednesday.
According to Yonhap News Agency, this session is seen as a critical opportunity to resolve ongoing disputes over performance-based bonuses. The company's largest labor union has announced an 18-day strike beginning next Thursday, with over 46,000 members indicating their willingness to participate. The talks aim to address the deep divide between labor and management over bonuses connected to the company's artificial intelligence-related semiconductor earnings amidst the current memory supercycle.
The resumption of talks comes in the wake of Samsung replacing 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 take over as the company's representative. Earlier, Samsung Electronics Chairman Lee Jae-yong publicly apologized for the internal disputes and emphasized the need for unity within the company, addressing concerns during his return from an overseas business trip.
Union leader Choi Seung-ho responded by highlighting the erosion of employee trust in the company and called for genuine efforts to rebuild that trust during the upcoming discussions. The union demands fixed performance bonuses equal to 15 percent of the semiconductor division's operating profit and the elimination of the payout cap.
In contrast, management has suggested retaining the existing excess profit incentive system, with bonuses calculated from either 10 percent of operating profit or economic value added (EVA). Additionally, the company proposed a special compensation system to foster a more adaptable incentive structure.