Reported by Divacons
The meeting between the South Korean company and its union has failed in its latest attempt to avert the biggest strike in the tech giant’s history, which is planned to last 18 days and is set to begin tomorrow if the dispute is not resolved at the last minute. The strike would involve more than 45,000 workers.
The union is demanding that Samsung remove the current cap on bonuses, allocate 15% of its operating profits to workers’ bonuses, and formalise these conditions in employment contracts. Furthermore, it has rejected calls to go to arbitration, insisting it will not accept an unfavourable wage deal, against a backdrop where President Lee Jae-myung has called for a balanced respect for both labour and business rights.
The breakdown in negotiations puts the global technology supply chain at risk, as Samsung is the world’s largest supplier of chips for devices ranging from data centre servers to smartphones and electric vehicles.
Shares in the South Korean tech giant fell by 1.37% in Seoul.
