S. Korea to Facilitate Samsung Electronics Labor-Management Dialogue to Avert Strike

SEOUL, May 13 (Yonhap) -- Prime Minister Kim Min-seok said Wednesday the government will provide whatever assistance it can to help facilitate dialogue between management and the labor union at Samsung Electronics so as to avert a strike in any circumstances. Kim's remark at an emergency meeting of related ministers came after Samsung and its labor union failed to reach a wage agreement earlier in the day, raising concerns over a major strike later this month that could disrupt operations at the world's largest memory chipmaker. During the meeting, Kim was briefed on the results of the talks and discussed follow-up measures. "Prime Minister Kim Min-seok instructed the government to manage the situation closely in light of the gravity of the ripple effects on the national economy and provide active assistance to help the labor-management dialogue continue so that it won't lead to a strike under any circumstances," his office said. Union and management have remained sharply divided over performance-based bonuses tied to the company's earnings related to artificial intelligence (AI). The union has demanded performance bonuses equivalent to 15 percent of operating profit, along with the removal of the payout cap and the formal institutionalization of the bonus system. The management, meanwhile, proposed allocating 10 percent of operating profit to bonuses and offering a one-time special compensation package that it said exceeds industry standards.