Samsung Electronics labor and management failed to reach an agreement at the second mediation meeting of the Central Labor Relations Commission, leading to a decision to "suspend mediation."
On the 4th, the union said, "The second mediation meeting ultimately reached a conclusion of 'suspend mediation' at 11:55 p.m. the previous day," and added, "We will convert the existing joint bargaining team system into the 'union joint struggle headquarters' and begin procedures to secure the right to strike."
"Suspend mediation" means the Central Labor Relations Commission's mediation process has ended because no agreement was reached between labor and management. Once this decision is made, the union meets the legal requirements for lawful industrial action.
However, this does not mean an immediate strike. The union must hold a strike authorization vote among members and meet the requirements of a majority of all registered members participating and a majority of those voting in favor. Only after this process are industrial actions such as a strike or partial strike legally protected.
Securing the right to strike means entering a state in which a lawful strike is possible. Whether talks resume and the scale of industrial action will be decided based on labor-management negotiations and the results of the vote.
The key sticking point in this round of talks was the bonus system. The union has demanded transparency in the funding structure of bonuses and the removal of the cap. Management proposed supplementary measures, including a total 6.2% wage increase, a choice of bonus schemes, and granting 20 shares of company stock, but the two sides failed to reach an agreement.
The union joint struggle headquarters said, "We will not stop until an answer emerges that members can accept."