After days of talks that broke down multiple times, Samsung Electronics' union agreed on wages and collective bargaining with the conglomerate. The union suspended strike action from May 23 to 28 and will put the tentative agreement to a vote by its members from May 22 to 27.
SUWON, South Korea — Samsung Electronics' union said it would suspend a strike set to begin on Thursday after the two sides reached a tentative pay deal , potentially averting action that threatened to disrupt the production of AI and other chips.
The labor union suspended the planned 18 days of strike action by nearly 48,000 of its members to put the tentative agreement to a vote by its members. The vote will take place from May 22 to 27, union leader Choi Seung-ho told reporters. An earlier notice posted on the union's website had said it would happen from May 23 to 28.
Samsung Electronics said in a separate statement that the two parties had reached a tentative agreement on wages and collective bargaining and pledged to"build mature and constructive labor-management relations.
" The 11th hour deal came after days of talks that broke down multiple times, including earlier on Wednesday when the union announced that it would go ahead with the strike. Talks restarted later in the day after South Korean Labor Minister Kim Young-hoon stepped in to mediate. The two sides had been at odds over how performance bonuses would be distributed between the conglomerate's hugely profitable memory business and loss-making logic chip businesses, Reuters has previously reported.
Choi said they had agreed on how to distribute profit to loss-making businesses and would publish details of the tentative plan on the union's website shortly. He expects the union members to approve the wage deal, he added.
"We will do our utmost to stabilize labor-management relations at Samsung Electronics going forward," he said. Samsung accounts for almost a quarter of South Korea's exports and is also the world's largest memory chip maker so production disruptions risk fueling price rises at a time when the AI boom has caused shortages.
Samsung Electronics Union Strike Tentative Pay Deal AI Chips South Korea Memory Business Loss-Making Logic Chip Businesses Performance Bonuses Labor-Management Relations South Korea Labor Minister Kim Young-Hoon Distribution Of Profit Loss-Making Businesses
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