Samsung Electronics labor talks collapse ahead of strike threat

May 13, 2026, 08:16 am

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Samsung Electronics Vice President Kim Hyung-ro (left), the company’s chief bargaining representative, and Choi Seung-ho, head of the Samsung Electronics chapter of the National Samsung Electronics Union, leave the Central Labor Relations Commission in Sejong on May 13. /Yonhap

Samsung Electronics’ labor and management failed to reach an agreement during overnight post-mediation talks, raising the likelihood of a strike that could reportedly cause up to 30 trillion won ($21.8 billion) in losses.

According to industry sources on May 13, negotiations mediated by the Central Labor Relations Commission began at 10 a.m. the previous day and continued into the early morning. However, the union declared the talks had broken down at around 3 a.m., rejecting the mediation proposal.

The emergency negotiations were held ahead of a planned strike on May 21, but the two sides remained divided over the company’s bonus system.

The union demanded that Samsung institutionalize its performance bonus scheme by removing the cap on bonus funding and setting the funding source at 15% of operating profit. Later, the union also requested an expansion of the OPI stock compensation program even if the percentage was slightly reduced. Union officials claimed those demands were not reflected in the proposed mediation terms.

The mediation proposal presented by the commission was reportedly only a draft rather than an official adjustment plan.

Samsung Electronics also faces pressure from shareholder groups opposing the union’s demands. Some minority shareholder organizations holding rallies in Suwon and Itaewon argued that accepting the union’s proposal could hurt the company’s ability to invest in infrastructure and employment during future semiconductor downturns.

With no agreement reached after talks stretching over two days, the possibility of a strike on May 21 has increased significantly. However, additional negotiations or government intervention remain possible as both Samsung and authorities continue monitoring the situation closely.

Some observers have raised the possibility that the government could invoke emergency arbitration powers if the labor dispute is deemed likely to seriously damage the national economy. If implemented, such measures would ban strike action for 30 days while the commission conducts further mediation and arbitration procedures.

Later on May 13, the Suwon District Court is scheduled to hold a second hearing on Samsung Electronics’ request for an injunction against what the company describes as illegal strike activities by the union.

#Samsung Electronics #labor union #strike #Central Labor Relations Commission #bonus dispute