Seoul: Unionized workers of Samsung Electronics Co. have issued a stern warning, stating that the tech giant could face a substantial financial setback of up to 30 trillion won (US$20.3 billion) in profit for the current year if it proceeds with a planned walkout.

According to Yonhap News Agency, this warning arises amid stalled wage negotiations, where unionized workers previously demanded a significant increase in performance-based bonuses. Should these demands be met, Samsung Electronics might be compelled to allocate as much as 45 trillion won this year solely for bonuses. Choi Seung-ho, the head of the Samsung Electronics unit at the Samsung Group United Union (SGUU), highlighted in a press conference that "if we continue a strike for 18 days, the company is expected to suffer at least 20 trillion won to 30 trillion won in losses."

The union has unveiled plans to initiate a general walkout lasting from May 21 to June 7. Choi further explained that given some analysts' projections of Samsung Electronics achieving up to 300 trillion won in operating profit this year, the company could endure losses of approximately 1 trillion won per day if production disruptions occur due to the strike.

Choi stated that the union is calling for the removal of a cap on bonuses and is seeking greater transparency in the calculation of performance-based pay. However, he noted that management's responses have not been sincere. Negotiations between labor and management have reached an impasse since the union halted talks last month.

In response to the potential strike, Samsung Electronics filed for a court injunction earlier in the week to prevent the union from occupying critical facilities, including semiconductor production lines, to avert major operational losses.

Additionally, the Samsung Electronics unit of the SGUU announced that its membership has exceeded 74,000, out of the company's total workforce of about 129,000. This milestone marks the first time the union has secured a majority of employees, thereby gaining legal status as the representative labor union.