Wage negotiations between Samsung Electronics and its labor union collapsed on Wednesday, raising fears of a major strike starting May 21 involving more than 40,000 workers.
Despite two days of government-led mediation, the sides failed to narrow differences over performance-based bonuses. The union demanded 15 percent of operating profit with no cap and formal institutionalization of the system. Management offered 10 percent while rejecting removal of the cap.
Union leader Choi Seung-ho said the talks had regressed after waiting nearly 12 hours for a proposal. About 41,000 workers signaled intent to strike, with the number possibly rising above 50,000. The union pledged to proceed legitimately and focus on the court injunction.
The Suwon District Court is expected to rule by May 20 on Samsung's request to restrict the action. Finance Minister Koo Yun-cheol called the breakdown deeply regrettable and said the government would spare no effort to reach an agreement.
