<div id="readability-page-1"><div><p>SAMSUNG Electronics’ top management made a rare visit to leaders of the company’s largest labour union late Friday in an effort to revive stalled wage negotiations after government-mediated talks collapsed earlier this week.</p><p>Samsung shares fell 8.6 per cent in Seoul trading Friday, underscoring mounting investor concerns over a strike that could disrupt operations at the world’s largest memory chipmaker. The union has threatened an 18-day walkout beginning May 21 if its demands are not met. </p><p>Chief executive officer Jun Young Hyun, who heads Samsung’s semiconductor business, along with three other senior executives, visited the union’s office in the southern South Korean city of Pyeongtaek, home to Samsung’s sprawling semiconductor manufacturing complex, according to the union. </p><p>“We will view the labour union as one family and a community of shared destiny and approach dialogue with an unconditionally open attitude,” Samsung said in a statement on Friday. “We earnestly urge that the union comes forward to engage in dialogue without delay, mindful of public concerns and the national economy.” </p><p>Kim Young Hoon, Korea’s employment and labour minister, also met union’s leaders in Pyeongtaek. During the meeting, the union requested that Samsung appoint new management representatives for any future negotiations, according to a separate union statement. </p><p>The outreach came days after marathon tripartite wage talks involving the government, Samsung and the union broke down without an agreement. That has fueled fears of labour disruptions at a critical moment for the company’s booming chip business that accounted for more than 90 per cent of its total operating profit in the first quarter. </p><div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>Late Friday, Samsung conveyed its willingness to resume negotiations, while union leaders responded that talks could continue if management presents proposals addressing the union’s core demands. </p><p>The union has been pushing Samsung to expand performance-based compensation following a sharp rebound in semiconductor earnings driven by surging demand for artificial intelligence infrastructure.</p><p>Labour leaders are demanding that Samsung scrap an existing cap on bonuses, allocate 15 per cent of operating profit to worker bonuses and formalise those terms in employment contracts. </p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="4000" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/7cbefb71c4545d6de52d304ac72d24514ae66024ec2d757e3f33e5b42dc3943a/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="6000" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/7cbefb71c4545d6de52d304ac72d24514ae66024ec2d757e3f33e5b42dc3943a/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Samsung Electronics urges union to resume talks as strike threat looms</span></h3><p></p></div></div><div><div><div><p><img height="3793" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/68ded1c59a870fd281b5609e4f562b19850de7594720e64a53ad7a9d49931400/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5500" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/68ded1c59a870fd281b5609e4f562b19850de7594720e64a53ad7a9d49931400/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>US clears H200 chip sales to 10 China firms as Nvidia CEO looks for breakthrough</span></h3><p></p></div></div><div><div><div><p><img height="4000" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/bf14ab3d45f0ad6599a29fdb58ce7fc8c08e65083ae1e5cf25877256ebd26de2/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="6000" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/bf14ab3d45f0ad6599a29fdb58ce7fc8c08e65083ae1e5cf25877256ebd26de2/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>AI boom puts SK Hynix on the cusp US$1 trillion market value</span></h3><p></p></div></div></div></div></div></div><p>Samsung has proposed allocating 10 per cent of operating profit to bonuses, along with a one-time special compensation package that exceeds industry standards.</p><p>Company executives have argued that the union’s demands would be difficult to sustain over the long term. BLOOMBERG</p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

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<p>Samsung Electronics' top management visited the company's largest labor union to revive stalled wage negotiations after government-mediated talks collapsed. Shares fell 8.6% amid fears of an 18-day strike starting May 21. The union demands increased performance-based compensation and a higher allocation of operating profit to bonuses. Samsung proposed a 10% allocation and a special compensation package. The union is open to negotiations if management addresses their core demands.</p>

Samsung executives make rare union visit as strike fears mount