Samsung Electronics and union fail to agree on pay, strike risk looms
Samsung Electronics and its main labour union said their pay negotiations had broken down. South Korea's prime minister flagged the potential impact on memory chip supply and urged the sides to avoid a strike. Any work stoppage could ripple through the global semiconductor market.
Samsung Electronics said pay negotiations with its main labour union had ended without an agreement. The union said the company's offer on salary increases and performance bonuses was inadequate.
South Korea's prime minister pointed to the potential impact on the global memory chip supply and called on both sides to return to the table. Samsung accounts for a large share of worldwide DRAM and NAND output, so any work stoppage poses a risk for the supply chain.
Shares in Samsung Electronics swung during the Seoul session. Suppliers and major customers said they had arranged alternative supply channels in advance. The union said it would hold a general meeting over the weekend to vote on industrial action.
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