Labor relations commission to put forth proposal if Samsung management, u...

Park Soo-keun, chair of the National Labor Relations Commission, answers reporters’ questions during a break in the second day of post-mediation talks for Samsung Electronics, held at the commission’s office in Sejong on May 19. [YONHAP]

SEJONG — As management and labor of Samsung Electronics push deep into the night Tuesday in last-ditch talks to avert a strike, the mediating National Labor Relations Commission (NLRC) warned that it would step in with its own proposal if no deal is reached by 10:30 p.m.

"Either an agreement will be reached between management and labor around 10 or 10:30 p.m., or the National Labor Relations Commission will submit a mediation proposal if one is not reached,” Commission Chairman Park Soo-keun told reporters at around 7:20 p.m at the NLRC’s office in Sejong.

The post-mediation talks, originally scheduled from 10 a.m. to 7 p.m., are running well past their deadline as the two sides continued to haggle over key sticking points.

"There are differences on one or two key issues," the commission told reporters earlier Tuesday.

Amid a semiconductor upcycle, with Korean chipmakers Samsung Electronics and SK hynix enjoying record-breaking profits, Samsung’s union has demanded the abolition of an existing bonus ceiling and a provision guaranteeing 15 percent of annual operating profit be set aside as a bonus pool. Management has countered with a proposal to peg the bonus pool at 10 percent of operating profit, supplemented by a one-time special compensation package above industry benchmarks.

Management is reportedly currently reviewing a final proposal to present to the union. When it is ready, the union will put the proposal to a member vote, explained Park. If the proposal is voted down, the union intends to follow through on its threat to strike, scheduled to begin on Thursday.

The unions say that more than 46,000 members have expressed willingness to participate. If carried out, the strike could cost Samsung Electronics upward of 30 trillion won ($20 billion) in losses, according to multiple estimates.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.