Samsung, union deadlocked in strike talks over bonus system

Samsung Electronics and its labor union remained far apart Monday after the first day of intensive government-mediated negotiations aimed at preventing a planned nationwide strike later this week.

The talks, held at the National Labor Relations Commission in Sejong City, are scheduled to continue through Tuesday evening. The commission has set 7 p.m. Tuesday as the deadline for reaching a settlement. If no agreement is reached by that time, the union plans to begin a general strike Wednesday.

Nearly 48,000 workers are threatening to walk off production lines for 18 days over a dispute about bonus payouts. The negotiations focused on revisions to Samsung Electronics' performance bonus system, known internally as OPI.

Union representatives are demanding that bonus funding be fixed at 15% of operating profit with no payout ceiling. They have also asked the company to abolish a cap that currently limits bonuses to 50% of annual salaries.

Samsung management argues the current system, which is based on economic variables, should remain in place. The company has not publicly detailed alternative proposals during the talks.

The dispute centers on compensation levels, with union members protesting against what they characterize as inadequate bonus structures. Labor union members have demonstrated outside Samsung's semiconductor plant in Pyeongtaek, South Korea, ahead of the planned strike action.

The potential 18-day walkout would represent Samsung Electronics' worst-ever strike. A prolonged work stoppage at the South Korean memory chip maker has raised concerns about potential global memory chip shortages, given Samsung's significant role in semiconductor production.

Negotiations are scheduled to resume and continue through Tuesday evening, with both sides working under the government-imposed deadline to reach a settlement before the strike begins.