Samsung Electronics and its largest labor union faced a critical deadlock over bonus payments and wages, leading to the threat of a major strike. Nearly 48,000 workers were prepared to walk off the job for 18 days starting Thursday, a move that threatened to disrupt the production of AI and other chips at the world's largest memory chipmaker and damage global supply chains.
Negotiations grew tense as initial talks failed to bridge a gap on key issues, leading to reports that the work stoppage would proceed as planned. To prevent a crippling strike, South Korea's labor minister personally intervened to mediate last-minute negotiations between management and union leaders.
Following these mediated talks, the two sides reached a preliminary pay deal, averting the immediate strike. The labor union subsequently announced the suspension of the general strike planned for May 21 through June 7, providing a truce for the tech industry.
The tentative agreement will now be put to a vote by union members to determine its final approval. According to the union's website, the voting process is scheduled to take place from May 23 through May 28.