(LEAD) Samsung Electronics, gov't propose resuming wage talks; union reje...

(LEAD) Samsung Electronics-labor talks

(LEAD) Samsung Electronics, gov't propose resuming wage talks; union rejects offer

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By Kim Han-joo

SEOUL, May 14 (Yonhap) -- Samsung Electronics Co. and the government on Thursday urged labor unions at the world's largest memory chipmaker to resume wage negotiations after government-mediated talks collapsed earlier this week.

The South Korean tech giant sent an official document to its two major labor unions in what is widely viewed as a last-ditch effort to avert a strike scheduled for next Thursday.

Choi Seung-ho (C), head of Samsung Electronics Co.'s largest labor union, leaves the Suwon District Court in Suwon, south of Seoul, on May 13, 2026, after attending a hearing on the company's request for an injunction against a strike. (Yonhap)

Two days of government-led mediation talks ended without an agreement Wednesday, as labor and management remained sharply divided over performance-based bonuses tied to the earnings related to the company's artificial intelligence (AI) amid an upcycle in the semiconductor industry.

The National Labor Relations Commission on Thursday also called on the two sides to hold another round of government-mediated talks Saturday.

However, the union reaffirmed its position that it has no intention of engaging in further dialogue unless key demands are addressed.

"There is no reason to continue the dialogue without the institutionalization of bonus payments and transparency," said Choi Seung-ho, head of Samsung Electronics' largest labor union.

Choi earlier said around 41,000 unionized workers had expressed their intention to participate in the planned 18-day general strike, adding that the number could rise to more than 50,000.

The union has demanded fixed performance bonuses equivalent to 15 percent of the operating profit generated by the company's semiconductor division, along with the removal of the payout cap.

Management, meanwhile, proposed maintaining the cap while offering a one-time special compensation package for employees in the semiconductor sector.

Samsung Electronics posted a record 57 trillion won (US$38.2 billion) in operating profit for the first quarter, driven by strong demand for AI memory.