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 after failing to overcome differences over the performance-based bonus system during the second post-adjustment meeting at the Central Labor Relations Commission (CLRC). Despite two days of talks, the company did not accept the union's demands to institutionalize the performance-based bonus and abolish its ceiling, putting the largest strike in the company's history, scheduled for the 21st, on the verge of becoming a reality.

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

On May 12, starting at 10 a.m., Samsung Electronics' labor and management convened the second post-adjustment meeting for the 2026 wage agreement at the Central Labor Relations Commission in Government Complex Sejong, but ended discussions around 3 a.m. on the 13th without reaching an agreement. The labor and management had resumed negotiations through the post-adjustment process over a two-day schedule beginning on the 11th.

Choi Seungho, chairman of the Samsung Electronics Branch of the Super Large Enterprise Labor Union, the company's largest union, said after the talks concluded that day, "The gap between labor and management was not narrowed, so we requested an adjustment proposal from the CLRC and waited for nearly 12 hours, but the proposal had actually regressed," adding, "The union has declared the post-adjustment process to be broken off."

According to the union, the CLRC's adjustment proposal maintained a 50% ceiling on performance-based bonuses and stipulated that special management performance bonuses would be paid only to the Device Solution (DS) division responsible for semiconductors, and only if both sales and operating profit ranked first in Korea, with 12% of operating profit as the source of funds.

The CLRC stated that the gap between labor and management was too large to present an adjustment proposal and thus ended the procedure. The CLRC also said, "We supported discussions by proposing various alternatives based on the arguments of both sides, but the gap between their positions was significant, and since the union requested to halt the post-adjustment, we decided not to present an adjustment proposal and to conclude the process." However, it left open the possibility of additional support at any time should both sides jointly request it, leaving room for further dialogue.

Chairman Choi made it clear he intends to push ahead with the general strike scheduled for the 21st. He stated, "I don't think waiting any longer makes sense," and added, "We have no intention of engaging in illegal industrial action. We plan to proceed with the dispute lawfully." He also claimed, "There are 41,000 union members who have indicated they will participate, but given the current management proposal, that number is expected to exceed 50,000."

The union attended the second hearing for the 'injunction to prohibit illegal industrial action by the Samsung Electronics union' scheduled at Suwon District Court that morning, explaining the legal legitimacy of the strike. Chairman Choi maintained, "Lawful industrial action is not an issue," and added, "Even if part of the injunction is granted, there will be no problem with the strike itself."

Industry sources estimate that should a strike actually occur, damages would exceed 40 trillion won, with potentially devastating effects on the national economy, including disruption of the semiconductor supply chain. As a result, there is cautious speculation that the government may invoke its 'emergency mediation authority' to forcibly halt the dispute and order mediation. The emergency mediation authority is an exceptional measure that has not been exercised in over 20 years since the 2005 airline pilots' strike.

The management expressed regret that the post-adjustment process fell through due to the union's declaration of a breakdown. In a statement released that day, management said, "The post-adjustment process, which the government painstakingly arranged, unfortunately collapsed due to the union's declaration of a breakdown," adding, "This decision by the union causes serious concern and anxiety not only for the company but also for employees, shareholders, and the public who are awaiting a resolution." Management further stated, "We will continue to make sincere efforts through dialogue until the end to prevent the worst-case scenario."

Collective action by Samsung Electronics shareholders also continued. The Korea Shareholder Activism Movement Headquarters, a civic group for minority shareholders, directly criticized the massive operating losses and resulting drop in share price that would arise from the union's strike, as well as the consequent damage to shareholder value, at Suwon District Court that day.

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