Samsung Electronics, union remain deadlocked in strike talks

May 18 (Asia Today) -- Samsung Electronics and its labor union remained far apart Monday after the first day of intensive government-mediated negotiations aimed at preventing a planned nationwide strike later this week.

The talks, held at the National Labor Relations Commission in Sejong City, are scheduled to continue through Tuesday evening. If no agreement is reached, the union plans to begin a general strike Wednesday.

The commission has set 7 p.m. Tuesday as the deadline for reaching a settlement.

The negotiations focused on revisions to Samsung Electronics' performance bonus system, known internally as OPI.

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Union representatives are demanding that bonus funding be fixed at 15% of operating profit with no payout ceiling. Management argues the current system, which is based on economic value added calculations reflecting operating profit and costs, should remain in place.

The two sides confirmed their positions during the morning session before exchanging revised proposals during afternoon negotiations. Talks ended around 6:30 p.m.

National Labor Relations Commission Chairman Park Soo-keun said mediation would resume at 10 a.m. Tuesday.

"The positions of both sides are still running in parallel," Park said after a temporary recess Monday afternoon. "We will continue coordinating efforts to avoid a strike."

Park also denied reports that negotiators were discussing a bonus pool equivalent to around 10% of operating profit, saying no formal mediation proposal had yet been finalized.

The commission plans to present a mediation proposal Tuesday and said it intends to conclude the process by the evening deadline.

Union leaders earlier accused Samsung management of informally presenting revised terms weaker than a previous mediation proposal. According to the union, management proposed a formula based on either 10% of operating profit or 20% of economic value added, while also reducing the size and duration of additional bonus payments.

The union said it could walk away from negotiations and proceed with the strike if management maintains that position.

The dispute comes after the Suwon District Court partially approved Samsung Electronics' request for an injunction restricting illegal strike actions. The court ruled that staffing levels for safety and health-related operations must remain at normal levels to prevent serious losses such as wafer damage.

The union said it respected the court's decision but interpreted the ruling as requiring only minimal staffing levels similar to weekends and holidays.

Samsung management disputed that interpretation, saying staffing for critical operations must remain equivalent to pre-strike weekday and weekend levels to maintain safety protections and prevent damage to facilities and products.

The South Korean government has also hinted it could invoke emergency mediation powers because of concerns over economic disruption and semiconductor production risks.

Prime Minister Kim Min-seok and President Lee Jae-myung both expressed negative views toward the strike over the weekend, raising pressure on both sides to reach an agreement.

If emergency mediation is invoked, labor actions could be restricted for a certain period.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260518010004981