--- title: "Samsung and labor union to meet in 'last chance' to avert strike" type: "News" locale: "en" url: "https://longbridge.com/en/news/286675762.md" description: "Samsung Electronics and its largest labor union are resuming negotiations to avert a strike, with Prime Minister Kim Min-Seok warning of severe economic consequences. The union demands higher performance-based compensation, while Samsung proposes a lower allocation of operating profit for bonuses. The talks come ahead of a May 21 deadline, with potential costs of 1 trillion won per day if a strike occurs. The government may use emergency powers to prevent the strike if no agreement is reached." datetime: "2026-05-17T06:36:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286675762.md) - [en](https://longbridge.com/en/news/286675762.md) - [zh-HK](https://longbridge.com/zh-HK/news/286675762.md) --- # Samsung and labor union to meet in 'last chance' to avert strike Samsung Electronics Co. and its largest labor union are set to resume negotiations Monday to avert a strike that the nation’s prime minister warned could wreak havoc on the economy. Management and the union representatives at the world’s biggest memory chipmaker will meet for talks on wages and compensation, with Samsung having reported operating profit that soared on artificial intelligence-driven demand for its semiconductors. “Along with the entire public, we earnestly request Samsung’s management and union to achieve results during the mediation tomorrow, which is virtually the last chance,” Prime Minister Kim Min-Seok said in an address to the nation on Sunday. “If the strike becomes a reality, the economic damage that we have to face would be unimaginable.” The negotiations, in which the head of the government’s labor relations commission will take part, come three days ahead of the union’s May 21 deadline for an agreement, before it stages an 18-day walkout. Kim estimated the labor action would cost up to 1 trillion won ($668 million) for every day the Samsung chip factory is shut. The prime minister signaled for the first time that the government could resort to emergency powers to prevent a strike if the parties fail to reach an agreement. Kim said the government would pursue “all measures including emergency powers” in order to protect the national economy if the labor action threatened the economy. Samsung Electronics Chair Jay Y. Lee issued a rare apology at the weekend for the company’s “internal issues” causing concern. “Now is the time to wisely gather our strengths and move in one direction,” Lee said Saturday at Seoul’s Gimpo International Airport as he returned from an overseas trip, according to a Yonhap News report. “Union members, Samsung family members, we are one body, one family.” Government-mediated negotiations broke down earlier this month, with management and the union unable to bridge a gap between the workers’ demands and executives’ offers. The workers’ group is calling on Samsung to expand performance-based compensation as earnings rebound on AI infrastructure demand. Labor leaders want Samsung to scrap an existing cap on bonuses, allocate 15% of operating profit to worker bonuses, and formalize the terms in employment contracts. Samsung has proposed allocating 10% of operating profit to bonuses, along with a one-time special compensation package that exceeds industry standards. Company executives have argued that the union’s demands would be difficult to sustain over the long term. ### Related Stocks - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [07747.HK](https://longbridge.com/en/quote/07747.HK.md) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) ## Related News & Research - [Samsung Electronics Management, Union Resume Talks to Avoid Strike — Update](https://longbridge.com/en/news/286747994.md) - [Key facts: Samsung to Begin 18-Day Strike May 21; Market Cap Tops $1T](https://longbridge.com/en/news/286483779.md) - [Samsung Elec, South Korea union to resume pay talks on Monday, union says](https://longbridge.com/en/news/286640912.md) - [Samsung, South Korean Union Resume Talks As Strike Threat Risks Disrupting Memory Chip Fabs](https://longbridge.com/en/news/286647175.md) - [Samsung, labour union meet again as Seoul threatens to intervene to block strike](https://longbridge.com/en/news/286837316.md)