Samsung management, union resume last-ditch wage talks

May 17 (Asia Today) -- Samsung Electronics management and labor representatives will return to the negotiating table Sunday for what industry officials describe as a critical final attempt to avoid a large-scale strike.

The talks are scheduled to take place Monday at South Korea's Central Labor Relations Commission in Sejong, three days before the union's planned walkout.

The negotiations come after talks collapsed Tuesday over disagreements surrounding the company's bonus system.

Union officials have demanded that Samsung institutionalize a performance bonus formula based on 15% of operating profit and remove bonus caps. Management and labor have struggled to narrow differences over how bonuses should be calculated and disclosed.

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The dispute has drawn national attention because of Samsung's central role in South Korea's economy and semiconductor industry.

Samsung Chairman Lee Jae-yong publicly called for renewed dialogue Friday while returning from an overseas business trip.

"We are one body, one family," Lee said in a message to employees and union members. "This is the time to wisely combine our strength and move in the same direction."

The union had previously insisted it would not resume talks before launching the strike, but changed course after Lee's appeal and calls from the government for continued negotiations.

Samsung also replaced its lead management negotiator at the union's request.

According to labor officials, the new representative, Yeo Myung-gu, head of the Device Solutions division's people team, recently met with union leaders and urged cooperation for labor-management coexistence.

Business groups say both sides may need to compromise to prevent further disruption.

Industry officials say Samsung could improve transparency by more clearly disclosing how bonuses are calculated and funded, while the union may need to consider alternatives short of tying bonuses directly to operating profit.

One business official said the union's demand reflects broader distrust over the transparency and predictability of Samsung's current compensation system.

"If management can present an alternative that improves transparency and predictability, the union may need to remain open to compromise," the official said.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260518010004613Z