Seoul: Samsung Electronics Co.'s labor union announced Friday it will resume negotiations with management next week after initial talks broke down over bonuses. The announcement comes as unionized workers have threatened to go on strike later this month.

According to Yonhap News Agency, the tech giant's largest labor union plans to enter follow-up mediation procedures on Monday and Tuesday. This decision follows the government's request to continue talks with management to bridge differences over unresolved issues. The union had previously announced plans for an 18-day general strike starting May 21 if demands for higher performance-based bonuses are not met.

Choi Seung-ho, head of the main labor union, emphasized the union's readiness to proceed with the walkout if upcoming talks fail to yield satisfactory results. The decision to revisit negotiations emerged from consultations involving the labor union, government mediators, and management. The government reportedly advocated strongly for follow-up mediation, a step taken after formal labor dispute adjustments conclude, giving the union legal grounds to strike.

"Following an internal review of the government's strong will and repeated requests we heavily consider, we decided to accept the follow-up mediation procedures," the union stated. A Samsung official noted that the company will "take part in the follow-up mediation procedures in earnest."

Wage negotiations between management and the labor union have been ongoing since December, but talks stalled in March over disagreements concerning performance-based bonuses. The labor dispute at Samsung Electronics, the world's largest memory chip maker and South Korea's most valuable company, has sparked concerns about potential disruptions in production and the semiconductor supply chain. Some forecasts suggest the company could face up to 30 trillion won (US$20.3 billion) in losses if the strike occurs.

Samsung Electronics recently reported an operating profit of 57.23 trillion won for the first quarter, a significant increase from 6.68 trillion won a year earlier, driven by robust demand for high-end memory chips used in artificial intelligence applications.