South Korean Media: Samsung Electronics Talks Break Down… Union: Nationwide Strike Planned for Tomorrow

¬ Management: Unacceptable to Demand Over 100 Million Won Performance Bonuses Even from Loss-Making Departments

On the 20th, the Samsung Electronics union stated that due to management's rejection of the mediation proposal, the mediation process has officially ended, and a nationwide strike will begin tomorrow.

On the same day, Choi Seung-ho (surname transliteration), branch chairperson of the Samsung Electronics division of the Confederation of Korean Trade Unions, said: "The union sincerely participated in three days of post-mediation negotiations and made every effort to seek consensus." He added: "Around 10:00 PM on May 19, the union accepted the mediation proposal put forward by the Central Labor Commission, but management refused it." He emphasized: "The union will carry out its legally authorized nationwide strike as planned tomorrow," and "we clearly state that even during the strike period, we will continue efforts toward reaching a compromise."

On the same day, Samsung Electronics released a statement saying: "We deeply regret the conclusion of the post-mediation process," and stressed: "A strike should never happen under any circumstances." The statement explained: "The final failure to reach an agreement in the post-mediation process stemmed from the fact that fully accepting the union’s excessive demands would undermine the fundamental principles of corporate management." It further noted: "Especially after the company had already agreed to performance bonus scales and most other key points, the union still insisted on demanding exceptionally high compensation from loss-making departments—amounts far beyond societal acceptance."

On the same day, Chairman Park Soo-geun of the Central Labor Commission told reporters: "In terms of outcome, the mediation failed and has been declared concluded. However, compromise remains essential. Both parties can reapply for labor-management coordination at any time, and mediation can be immediately restarted." The Central Labor Commission did not disclose the specific content of the mediation proposal. Regarding the widely reported dispute over the performance distribution ratio, which remained significantly different between labor and management until the end, he said: "The union made substantial concessions." When asked whether emergency mediation powers might be considered, he replied: "It is impossible."

After the breakdown of the post-mediation session on the same day, when questioned about the possibility of activating emergency mediation powers, South Korea’s Ministry of Employment and Labor responded: "There is still room for dialogue between labor and management," and emphasized: "Rather than resorting to emergency mediation powers, we will fully support both sides in restarting talks."

On the 18th and 19th, Samsung Electronics’ labor and management teams held consecutive meetings to negotiate issues including abolishing the 50% cap on annual performance bonuses, the allocation ratio of performance funds, and institutionalizing agreements—but ultimately failed to reach a consensus.

Source: Chosun Ilbo

Original article: toutiao.com/article/1865682100475911/

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