Samsung Electronics' labor union announced on Friday that it will resume wage negotiations with management next week. The decision follows the breakdown of initial talks over bonuses and acceptance of government mediation requests. Unionized workers had threatened an 18-day general strike starting May 21.
The union said it will enter follow-up mediation procedures on Monday and Tuesday. Choi Seung-ho, head of the main labor union, warned that the union will move ahead with its walkout if the planned talks fail to produce satisfactory results.
Wage negotiations have been underway since December but broke down in March over performance-based bonuses. The government strongly recommended continued mediation after the formal dispute process ended.
The labor dispute at the world's largest memory chip maker has raised concerns over potential disruption to the semiconductor supply chain. Some estimates suggest losses of up to 30 trillion won if the strike takes place. Last month Samsung Electronics posted an operating profit of 57.23 trillion won for the first quarter.
