Seoul: Samsung Electronics Co. Chairman Lee Jae-yong has called for solidarity within the company as its labor union gears up for a significant strike set to commence next week, following stalled wage negotiations.
According to Yonhap News Agency, Lee made his appeal for unity at Gimpo International Airport in western Seoul, where he returned from an overseas business trip. Amid an impasse with the labor union, Lee emphasized the need for collective effort, stating, "Now is the time to wisely gather our strengths and move in one direction. Union members, Samsung family members, we are one body, one family."
Lee expressed his willingness to shoulder the responsibility for the current situation and extended apologies to Samsung's global customers and the public for the concern caused by the company's internal issues. Despite the company's proposal to resume negotiations without preconditions, the labor union announced it would proceed with an 18-day strike starting next Thursday, potentially disrupting production at the leading memory chipmaker.
The union has indicated that over 46,000 members have shown readiness to participate in the strike, with expectations that the number could exceed 50,000. Government officials have warned that a strike at Samsung Electronics could have significant repercussions on South Korea's economy, which heavily relies on exports. Observers predict potential losses could reach up to 100 trillion won (US$66.7 billion).
Efforts to resolve the dispute through government-led mediation talks concluded without an agreement as labor and management clashed over performance-based bonuses tied to earnings from the company's AI-related semiconductor business. Labor Minister Kim Young-hoon met with Samsung executives on Saturday, urging them to continue dialogue with union officials, as reported by his ministry.
The company has suggested maintaining the existing excess profit incentive system while offering flexibility in calculating the bonus pool. Samsung has proposed a special compensation system to foster a more adaptable incentive structure. Conversely, the union has demanded fixed performance bonuses of 15 percent of the semiconductor division's operating profit and the elimination of the payout cap.