The negotiations between the union and Samsung management failed, and the strike is scheduled for May 21.

Situation with Samsung and the union: key facts

What happened
Negotiations are underway between Samsung management and employee representatives, with a government commission acting as an intermediary. Result
The talks did not lead to an agreement; all major union demands remain unanswered. Action plan
The union is ready to announce a general strike on May 21 that could last 18 days. Consequences for Samsung
A significant loss is expected, loss of customer trust and market positions; price increases for memory worldwide (Samsung is the largest producer). Willingness to dialogue
Union leader Choi Son Ho does not intend to resume negotiations until May 21 but is ready to listen to proposals from management.

What the union specifically disputes
1. Compensation system

- The union demands a review of the scheme that limits annual bonuses to 50 % of salary for the period.

- It proposes paying bonuses up to 15 % of Samsung’s operating profit annually.

2. Bonus payments

- The union insists that these payments be directed to employees each year, not as a one‑time payout.

3. Overall compensation approach

- It was suggested to cap bonuses at 10 % of annual operating profit and pay a lump‑sum compensation this year – Samsung’s proposal.

Role of the government commission
- The commission tried to propose several conflict‑resolution scenarios but found the gap in positions too large.

- In the end it withdrew from the process, leaving both sides without a mediator.

- The union demanded the conclusion of negotiations, as it sees no compromise with management.

Financial and market consequences
- After the failure of the final negotiation stage, Samsung Electronics’ capitalization fell by $66 million (≈ 6 %).

- Price increases for memory are expected, as Samsung remains the world’s largest producer.

- Loss of customer trust and concession of positions to competitors could intensify market pressure.

Conclusion
The union is ready for an 18‑day strike on May 21 if management does not offer satisfactory terms. Until then negotiations remain fruitless, and Samsung risks losing a significant share of its market and financial stability.