SAMSUNG ELECTRONICS TO BE HIT BY STRIKE – The strike is expected tomorrow after talks with union collapse
Samsung Electronics’ union plans for 48,000 workers to walk off the job tomorrow Thursday May 21st after efforts to clinch a deal on bonus payments fell through, threatening the global supply of semiconductors.
Union leader Choi Seung-ho said the 18-day strike would go ahead as management had not come round on one remaining sticking point in talks mediated by the government.
Samsung Electronics said in a statement that the union had insisted on “unacceptable demands” that included the size of bonuses for loss-making units. Its shares were down 3.1% after the news.
The union had demanded that Samsung abolish a cap on bonuses that stands at 50% of annual salaries, allocate 15% of annual operating profit to bonuses and that these changes be formalised beyond one year.
