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 at Samsung Electronics declared a breakdown in negotiations at the second post-mediation meeting of the Central Labor Relations Commission, failing to resolve their differences over the performance-based bonus payment system. Despite two days of negotiations, management did not accept the union's demands to institutionalize the bonus system and abolish its upper limit, putting the company at risk of facing the largest general strike in its history on May 21.

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

Choi Seungho, Chair of the Samsung Electronics Branch of the Super Large Enterprise Labor Union—the largest union within Samsung Electronics—said after negotiations ended, "As the gap between labor and management could not be narrowed, we requested a proposal from the Central Labor Relations Commission and waited nearly 12 hours, but the proposal actually regressed," adding, "The union has declared the post-mediation process to be broken off."

According to the union, the Central Labor Relations Commission's proposal maintained the 50% upper limit on performance-based bonuses and stipulated that the special management performance bonus would be paid only to the Device Solutions (DS) division responsible for semiconductors, and only if both sales and operating profit ranked first domestically, with 12% of operating profit as the fund source.

The Central Labor Relations Commission stated that it ended the process without presenting a proposal, citing the wide gap between labor and management. The commission said, "Although we presented a variety of alternatives to support discussions based on both parties' positions, the gap was too large and the union requested to end the post-mediation process, so we decided to conclude this session without offering a proposal." However, the commission left open the possibility for further support if both sides agree and request it, indicating that dialogue could still continue.

Chairman Choi made clear his intention to push ahead with the general strike scheduled for May 21. He stated, "I think waiting any longer is meaningless," and "We have no intention of engaging in any illegal industrial action. The strike will proceed according to the law." He also claimed, "While 41,000 union members have expressed their intention to participate, given the current management agenda, the number could exceed 50,000."

The union attended the second hearing for Samsung Electronics' application for an injunction to prohibit illegal industrial action at Suwon District Court that morning, where it explained the legal justification for the strike. Chairman Choi argued, "Legitimate industrial action is not an issue," and "Even if part of the injunction is granted, it does not affect the strike."

Industry observers believe that if the strike actually occurs, the damages could exceed 40 trillion won, dealing a critical blow to the national economy, including disruption to the semiconductor supply chain. As a result, some are cautiously mentioning the possibility that the government may invoke an "emergency adjustment order" to forcibly halt industrial action and mandate mediation. This is an exceptional measure that has not been used for over 20 years since the 2005 airline pilots' strike.

Management expressed regret that the post-mediation process broke down due to the union's declaration. In a statement, management said, "The post-mediation process, which was painstakingly arranged by the government, unfortunately collapsed due to the union's declaration of a breakdown," and "Such a decision by the union causes great concern and anxiety not only for the company, but also for employees waiting for an agreement, as well as shareholders and the public." Management added, "We will continue our sincere efforts for dialogue until the end to prevent the worst-case scenario."

Collective action by Samsung Electronics shareholders has also continued. The Korea Shareholder Movement Headquarters, a civic group of minority shareholders, directly criticized the potential massive operating losses and consequent decline in share value that could result from the union's general strike at the Suwon District Court that day.