Samsung Strike Called Off at the Last Minute

The threat of a major strike by Samsung workers, which was expected to disrupt the global semiconductor supply chain and impact the world economy, has been temporarily averted. The main union of Samsung Electronics announced that the planned strike, which was set to begin early Thursday, has been called off following a last-minute temporary wage agreement with the management. Talks between both sides had repeatedly failed until late Wednesday night, raising concerns of an inevitable strike. However, South Korea’s Labour Minister Kim Young-hoon intervened personally, helping both sides reach a consensus.

The agreement aims to improve labour relations, and around 48,000 union members will vote on ratifying the deal between May 22 and 27. Employee dissatisfaction had been growing over lower wages compared to rival SK Hynix and disputes over bonus distribution policies. Workers demanded the removal of the 50 percent cap on bonuses and sought a direct link between bonuses and company operating profits. After multiple failed negotiations and plans for an 18-day strike, the last-minute agreement has brought temporary relief to the global semiconductor industry.