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Samsung labor talks set to resume as leadership pushes unity amid strike threat

By The South Asia Times

SEOUL - Labor negotiations at South Korea’s tech giant Samsung Electronics Co. are set to resume after the company decided to replace its chief labor negotiator, a move that could help break a deadlock ahead of a planned major strike, Yonhap News reported Saturday.

According to the company’s largest labor union, dialogue between management and workers will restart after Vice President Kim Hyung-ro is replaced as the main negotiator by Yeo Myung-koo, head of the Device Solutions division’s People Team.

Union leader Choi Seung-ho said in a notice that while the meeting is expected to proceed, the agenda has not yet been finalized. The union had earlier called for Kim’s removal, citing his alleged lack of understanding of the semiconductor business.

The development comes as tensions escalate between management and workers at Samsung Electronics, whose union is preparing for a large-scale strike next week that could disrupt global semiconductor supply chains.

Samsung Chairman Lee Jae-yong on Saturday urged unity within the company, calling on employees and union members to “move in one direction” as negotiations remain stalled over wage and performance-based bonus systems.

Speaking at Gimpo International Airport after returning from an overseas trip, Lee apologized to global customers and the public for concerns caused by internal labor disputes, saying he would take responsibility for navigating the crisis.

The strike, planned to last 18 days starting next Thursday, could involve more than 50,000 workers, according to union estimates, raising concerns about potential disruptions at the world’s largest memory chipmaker.

Government officials have warned that a prolonged work stoppage could significantly impact South Korea’s export-driven economy, with some estimates suggesting losses could reach tens of billions of dollars.

Despite mediation efforts earlier this week, talks ended without agreement as both sides remain divided over performance-linked bonuses tied to semiconductor profits, particularly in the artificial intelligence-driven memory chip market.

Labor Minister Kim Young-hoon has urged both sides to continue dialogue in an effort to prevent a nationwide disruption at one of South Korea’s most critical industrial firms.