Samsung Electronics and union extend talks to avert strike threatening global supply chains
Talks continued as more than 45,000 workers prepared to strike over Samsung’s bonus system, with officials warning of major export and supply chain risks.
- Samsung Electronics and labor unions held final talks on Monday to avert an 18-day strike involving more than 45,000 workers, currently scheduled to begin Thursday.
- Negotiations center on the bonus system, with unions demanding 15% of annual operating profit and removal of a 50% salary cap, while Samsung countered with a 10% offer.
- Suwon District Court granted Samsung an injunction requiring unions to maintain normal staffing levels for safety and quality during any industrial action, limiting strike scope.
- Prime Minister Kim Min-seok warned of "economic losses we will face will be beyond imagination," estimating potential $664.7m in direct losses while considering emergency arbitration.
- Global memory chip shortages have intensified pressure as customers like Nvidia indicated concerns about shipment quality if a walkout disrupts production before Thursday's start date.
28 Articles
28 Articles
Samsung Faces Historic Strike Threat Amidst Global Chip Shortage
Samsung Electronics is negotiating with its labor union to prevent a potential 18-day strike by 45,000 workers, during a critical global shortage of memory chips. The strike could disrupt South Korea's economy and the global supply chain. Talks continue despite a court ruling partially in favor of Samsung.
Samsung Electronics management and labor continued negotiations for over eight hours on the first day of their final talks, but ultimately failed to reach a mediation proposal. However, as the two sides concluded the meeting earlier than expected, there is speculation both inside and outside the National Labor Relations Commission that they may be finding common ground.
A threat of an 18-day strike starting Thursday comes amid a severe global shortage of memory chips.
Samsung Electronics and union extend talks to avert strike threatening global supply chains
Samsung Electronics and its labour union plan to hold more talks on Tuesday in a bid to avert the biggest strike in the tech giant's history, amid concern that a walkout by more than 45,000 workers could hit South Korea's economy and disrupt global supply chains.
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