Is the Union Still Aiming for the 45 Trillion Won Bonus?... Samsung Union Rejects Government Mediation as Countdown to May 21 General Strike Begins

Final Breakdown in Labor Talks Despite Central Labor Commission Mediation
'State of Emergency Mediation Right' Raised Amid Risk of Largest-Ever Strike
Management Expresses "Regret Over Breakdown"… Union Vows to "Proceed With Lawful Strike"

The labor and management of Samsung Electronics declared a breakdown in negotiations at the second post-adjustment meeting of the Central Labor Relations Commission (Central Labor Commission), failing to bridge their differences over the performance bonus payment system. Despite two days of talks, the labor union's demands for institutionalizing the performance bonus system and abolishing the upper limit were not accepted, putting the company at risk of facing the largest general strike in its history on May 21.

Choi Seungho, Chair of the Samsung Electronics Branch of the Super Large Enterprise Labor Union, is attending the post-adjustment meeting held on the 11th in the 1st Mediation Conference Room of the Central Labor Relations Commission at the Government Complex Sejong. Photo by Yonhap News

On May 12, starting at 10:00 a.m., Samsung Electronics labor and management held the second post-adjustment meeting for the 2026 wage agreement at the Central Labor Relations Commission in the Government Complex Sejong, but ended discussions at around 3:00 a.m. on May 13 without reaching an agreement. The labor and management had resumed negotiations through the post-adjustment procedure over two days, starting from May 11.

Choi Seungho, Chair of the Samsung Electronics Branch of the Super Large Enterprise Labor Union—the largest union within Samsung Electronics—stated after the negotiations concluded, “The differences between labor and management could not be narrowed, so we requested a mediation proposal from the Central Labor Commission and waited for nearly 12 hours. However, the proposal was even worse than before. Therefore, the union declared the post-adjustment negotiations to have broken down.”

According to the union, the Central Labor Commission’s mediation proposal maintained the 50% cap on performance bonuses and stipulated that special management performance bonuses would only be provided—using 12% of operating profit as the source of funds—to the Device Solutions (DS) Division, which handles semiconductors, and only if both sales and operating profit achieved the top position in Korea.

The Central Labor Commission stated that the gap between labor and management was too great to present a mediation proposal and thus concluded the procedure. On the same day, the Commission announced, “We supported the discussions by presenting various alternatives based on the arguments from both sides, but due to the wide gap between the demands of labor and management and the union’s request to halt the post-adjustment process, we decided to conclude this round without presenting a mediation proposal.” However, the Commission left open the possibility for further support if both sides reach an agreement and make a request, indicating that dialogue could resume at any time.

Chair Choi made it clear that the union is determined to proceed with the general strike scheduled for May 21. He stated, “I don’t think there is any point in waiting any longer. We do not intend to engage in any illegal industrial action. We plan to proceed lawfully.” He added, “Currently, 41,000 union members have expressed their intention to participate, but given the company’s current proposal, that number could exceed 50,000.”

The union attended the second hearing for Samsung Electronics’ application for an injunction to prohibit “illegal industrial action” by the union, which was scheduled to be held at Suwon District Court that morning, and explained the legal grounds for the strike. Chair Choi argued, “Lawful industrial action is not a problem. Even if some parts of the application are accepted, there will be no issue with the strike.”

Industry experts estimate that if the strike actually takes place, the resulting damages could exceed 40 trillion won and that it could deal a devastating blow to the national economy, including the disruption of the semiconductor supply chain. As a result, some have cautiously raised the possibility that the government may invoke the “emergency adjustment authority,” which allows for the forced suspension of industrial action and mandates further mediation. The emergency adjustment authority is an exceptional measure and has not been exercised in over 20 years since the airline pilots’ strike in 2005.

The management expressed regret that the post-adjustment process was rendered fruitless by the union’s declaration of a breakdown. In a statement, the company said, “Unfortunately, the post-adjustment process, which the government worked hard to establish, was nullified due to the union’s declaration of a breakdown. Such a decision by the union causes significant concern and anxiety not only to the company but also to employees waiting for a resolution, as well as to shareholders and the general public.” The company added, “We will continue to do our utmost, through sincere dialogue until the very end, to prevent the worst-case scenario.”

Collective action by Samsung Electronics shareholders also continued. The “Korea Shareholders’ Action Headquarters,” a civic group of minority shareholders, directly criticized the massive business losses and subsequent share price declines—and the attendant damage to shareholder value—that could result from the union’s push for a strike during the hearing at Suwon District Court.

This content was produced with the assistance of AI translation services.