Samsung Electronics Union to Strike for 18 Days After Mediation Talks Fail

Samsung Electronics’ biggest labour union is threatening to strike at the height of the global AI chip boom after government-led mediation talks collapsed. The planned walkout is scheduled from May 21 to June 7 for a total of 18 days. Samsung Electronics and union representatives failed to reach an agreement after two days of government-led mediation talks that collapsed on Wednesday.

Samsung Electronics expressed regret over the collapse of negotiations. The company said it hoped to continue sincere dialogue with the union. Union leaders said they would not return to the negotiating table until after the planned strike unless Samsung Electronics made significant concessions.

The company argued that allocating a fixed proportion of operating profits to employee bonuses could weaken its ability to invest during future downturns in the semiconductor industry. Demand for artificial intelligence infrastructure has driven record profits at South Korean chipmakers. SK Hynix has a profit-sharing arrangement with its workers.

The mediation talks were widely viewed as a last-ditch effort to avert a strike. The union has warned it will stage an 18-day walkout from May 21 to June 7.

South China Morning Post reported that the action is raising concerns about production disruptions, customer defections and wider fallout across the global technology supply chain. Samsung Electronics argued that a fixed proportion of operating profits directed to bonuses would limit its flexibility.

The company said such an arrangement could hinder investment when the notoriously cyclical semiconductor industry faces downturns.