Samsung Electronics and its largest labor union engaged in last-minute wage negotiations on Wednesday, mediated by South Korea's labor minister. The discussions sought to resolve a dispute over bonus payments and prevent a planned strike involving nearly 48,000 workers.
At one point, talks appeared to have broken down as the two sides failed to bridge the gap on key issues. The union initially signaled that it would proceed with a work stoppage starting Thursday, a move that threatened to disrupt operations at the world's largest memory chipmaker and impact global supply chains.
However, a tentative pay deal was eventually reached, averting a potentially crippling strike that was scheduled to last 18 days from May 21 to June 7. This truce prevents significant disruption to the production of AI and other chips.
The labor union has decided to suspend the general strike until further notice. Union members are scheduled to vote on the tentative agreement from May 23 through May 28.