Samsung Electronics and labor unions launched final talks on Monday as they try to avert what could be the largest strike in the tech giant's history. There are concerns that the work stoppage initiated by more than 45,000 employees may impact the South Korean economy and disrupt the global supply chain. The 18-day strike, scheduled to begin on Thursday, comes amid a severe global shortage of memory chips. Memory chips are core components for artificial intelligence data centers, smartphones and laptops. In recent months, the shortage of chips has also caused profits of Samsung and its peers to soar.
As the world's largest memory chip manufacturer, Samsung's exports account for nearly a quarter of South Korea's total exports. Last week, the first round of salary and bonus negotiations between the two sides broke down under government-led mediation. Now the two sides will restart negotiations again on Monday.
The South Korean court also partially supported Samsung’s application for an injunction, further putting pressure on the union and requiring the union to ensure that the strike does not hinder the company’s normal production.
A court spokesman said by phone that the ruling clarified that production raw materials must not be lost during the strike, and that work related to safety production and preventing product damage must maintain normal operations.
The two major unions will each face a daily fine of 100 million won (approximately $72,000) if they violate the ruling, and union leaders will also be fined 10 million won per day, the spokesperson revealed.
The union issued a statement saying that even if the court issues a relevant ruling, if the negotiations fail to reach an agreement, it will still not give up its strike demands and promises to seriously participate in negotiations.
Samsung Electronics has not responded yet.
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There is a huge disparity in bonuses within Samsung. The memory department has a bonus of 500 million won, while the foundry department only has a bonus of 80 million won.