(Yonhap)
Samsung Electronics has entered emergency management mode one week before a labor union’s planned general strike, raising concerns over potential disruptions to semiconductor production.
According to sources on Thursday, Samsung Electronics began preparations to reduce production volumes in response to the possible strike.
Industry officials said semiconductor manufacturing lines require advance production and quality-control adjustments before any work stoppage in order to minimize operational damage.
“Even if the court approves an injunction banning illegal strike activities, losses are expected to range from 10 trillion won ($6.7 billion) to 20 trillion won,” a semiconductor industry official said. “If manufacturing operations are completely halted, the losses could reach an astronomical 100 trillion won.”
The South Korean government and Samsung Electronics management have urged the labor union to return to negotiations.
The National Labor Relations Commission on Thursday officially requested that labor and management resume suspended post-mediation talks on June 16.
Samsung Electronics management also sent an official document to the union the same day requesting renewed dialogue.
The union, however, said it would proceed with the planned strike unless Vice Chairman and Device Solutions (DS) Division CEO Jun Young-hyun presents specific proposals by 10 a.m. on Friday, including measures to improve transparency in performance-based bonuses and abolish bonus caps through institutional reforms.
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