SEOUL, May 13 : Samsung Electronics and its South Korean labor union failed to reach a pay deal on Wednesday, its union leader said, expecting over 50,000 workers would go ahead with a full strike that threatens to disrupt production of AI and other chips.
The impasse followed hours of marathon talks on Monday and Tuesday under a government-mediated process, as pressure from the public and the government mounted on Samsung workers to compromise on the pay deal and avert a strike.
“I would like to express some regret that none of the agenda items requested by the union have been addressed,” union representative Choi Seung-ho told reporters at about 3 a.m. local time on Wednesday.
He said the company did not address union demands to overhaul the pay scheme, including scrapping a cap on bonus pay currently set at 50 per cent of annual base salary, and calculating it solely based on operating profit.
The union has said that should its demands not be met, workers will strike for 18 days from May 21. That could delay shipments to customers, push up chip prices further and benefit rivals.
