Samsung and union to resume pay talks with government mediator

Samsung Electronics and its South Korean union were set to return to the bargaining table with a government mediator, a sign the company is trying to head off a strike that could reverberate through chip supply chains and global electronics manufacturing. The union said Samsung had replaced its negotiator before the resumed talks, and the two sides were also scheduled to meet separately later on Saturday.

The stakes are unusually high for a wage dispute. More than 45,000 workers were threatening what would be the largest strike in Samsung’s history, with an 18-day walkout set to begin May 21 if no agreement was reached. The conflict centers on performance-based bonuses tied to Samsung’s artificial intelligence-related earnings, a fight that has quickly spilled beyond pay and into questions of labor power at one of the world’s most strategically important chipmakers.

The union has pressed for 15% of operating profit to go to workers as bonuses and wants bonus caps removed. Management has offered a lower bonus framework and a one-time special compensation package. Earlier government-led mediation in Sejong broke down on May 13 after nearly 17 hours of talks, leaving the two sides still far apart. Samsung declined to comment on the separate meetings.

The dispute has also drawn in South Korea’s top economic officials, who have warned that a strike should be avoided because of the risks to growth, exports and financial markets. That concern reflects Samsung’s central role in the country’s industrial base and the broader electronics ecosystem. Customers cited in reporting include Nvidia, AMD and Google, underscoring how a prolonged stoppage could affect production schedules well beyond South Korea and intensify pressure on already fragile semiconductor and device supply chains.

The labor fight carries a deeper historical edge for Samsung Chairman Jay Y. Lee, who publicly apologized over the crisis and bowed to the public. In 2020, Lee Jae-yong apologized after executives were caught sabotaging labor-union activities and vowed to guarantee labor rights at the company, a pledge that gives added weight to the new talks. For Samsung, the immediate test is whether the Monday meeting and the separate Saturday discussion can restore enough trust to avert a strike before the May 21 deadline.