After marathon talks over revamping wages and bonuses, labor and management at Samsung Electronics failed to narrow differences on key issues, and the post-mediation ultimately collapsed. The union said the company's proposal was a step back from the previous offer and declared it unacceptable, adding it has begun preparing for labor actions and legal responses.

Choi Seung-ho, Chairperson of the Super-Enterprise Labor Union Samsung Electronics Branch, explains the proceedings of the post-mediation meeting to reporters in the No. 1 Mediation Conference Room of the Central Labor Relations Commission at the Government Complex Sejong in Sejong City in the afternoon on the 12th./Courtesy of News1

According to the industry on the 13th, labor and management at Samsung Electronics held a second post-mediation session at the Central Labor Relations Commission starting at 10 a.m. the previous day, but failed to reach a deal after roughly 17 hours of overnight negotiations. In the early morning, the union said, "Core demands related to revamping the bonus system were not reflected," and declared a final breakdown.

The biggest sticking point in the talks was whether to "institutionalize" the method for calculating the excess profit incentive (OPI). The union demanded scrapping the OPI cap, making the calculation criteria transparent, and institutionalizing them, while management was said to have insisted on keeping the current EVA (economic value added)-based OPI system.

※ This article has been translated by AI. Share your feedback here.