Samsung labor negotiations break down, increasing risk of strike

Previously, after a two-day marathon negotiation mediated by South Korea's labor department collapsed, the union and management remained deeply divided over performance bonuses tied to the significant profits from artificial intelligence. The union demanded that Samsung remove the current bonus cap, allocate 15% of operating profit to employee bonuses, and incorporate these terms into the labor contract. Samsung proposed allocating 10% of operating profit for bonuses and offered a one-time special compensation package above the industry standard. Company executives stated that the union’s demands would be difficult to sustain in the long term.