The South Korean chip maker said it couldn’t accept the union’s demands, including compensation even for unprofitable business units.
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The South Korean chip maker said it couldn’t accept the union’s demands, including compensation even for unprofitable business units.
Management and union leaders at Samsung Electronics failed to reach a last-minute deal over wages Wednesday, raising prospects for a strike at the South Korean electronics giant that could rattle global semiconductor supplies and the country’s trade-dependent economy. Government officials have threatened to invoke rarely used emergency powers to force a settlement at Samsung, where the union, which represents about 74,000 workers, says the company has failed to offer adequate compensation despite its soaring profits fueled by the global boom in artificial intelligence. After the latest round of talks ended without a breakthrough on Wednesday, union leader Choi Seung-ho told reporters that unionized workers will begin an 18-day strike from Thursday.
Samsung Electronics' management and its labour union resumed talks on Wednesday with only one day to go before a planned major strike that threatens the health of South Korea's economy and could disrupt the global supply of semiconductors. Park said he had proposed a compromise plan, which is being reviewed by Samsung. Should management accept the proposal, it will be put to a vote by Samsung's union members as early as Wednesday.
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South Korean memory chip maker Samsung Electronics is facing its worst-ever strike, with nearly 48,000 workers threatening to walk off production lines on Thursday for 18 days over a dispute about bonus payouts. Samsung's union has asked the company to abolish a cap that limits bonuses to 50% of annual salaries and to allocate 15% of annual operating profit to a bonus pool that would be distributed to workers. It also wants Samsung to make the changes binding beyond this year.
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By Hyunjoo Jin SEOUL, May 19 (Reuters) - Samsung Electronics and its South Korean labour union began another round of government-mediated talks on Tuesday to break an impasse in negotiations over pay
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Samsung Electronics and its South Korean labour union began another round of talks on Tuesday to break an impasse in bonus negotiations, after dialogue on Monday did not produce an agreement. The two sides are under mounting pressure to avert an imminent strike that threatens to hurt the Korean economy and chip production, but remained far apart during the government-mediated pay talks on Monday. Media reports said on Tuesday, citing the chairman of the National Labor Relations Commission that Samsung and the labour union are narrowing some differences.
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Samsung Electronics and its labour union plan to hold more talks on Tuesday in a bid to avert the biggest strike in the tech giant's history, amid concern that a walkout by more than 45,000 workers could hit South Korea's economy and disrupt global supply chains. The threatened 18-day strike starting on Thursday comes amid an acute global shortage in memory chips, which are essential components in AI data centres, smartphones and laptops. The shortage has fueled soaring profits at Samsung and its peers in recent months.
(Bloomberg) -- South Korean stocks erased their morning losses to finish higher, as optimism over progress in Samsung Electronics Co.’s labor talks helped offset the hit to sentiment from rising bond yields.Most Read from BloombergWinners and Losers From Trump and Xi’s Beijing Summit TalksHormuz Oil Flows Creep Higher as More Supertankers ExitUS, Iran Stall on Hormuz Reopening as Oil Supplies TightenUS and Iran Far From Deal as Bond Rout Piles Pressure on TrumpTrump Gets Revenge on Republican Wh
Both sides were under pressure to reach a deal after South Korea’s government warned that it could invoke emergency-mediation powers to force a settlement if negotiations fail.
Samsung Electronics and its South Korean labour union are set to join a new round of government-mediated pay talks on Monday, in a bid to avert a strike at the tech giant, which accounts for nearly a quarter of the country's exports. The talks resume days after a first round of government-mediated negotiations over pay and bonus schemes collapsed, ahead of a strike scheduled to begin on Thursday at the world's largest memory chipmaker. South Korean government officials, including the prime minister and finance minister, have voiced concerns that a strike should be avoided at all costs, warning it could pose significant risk to economic growth, exports and financial markets.
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South Korea will pursue all options, including emergency arbitration, to avoid a labour strike at the country's biggest employer Samsung Electronics and to minimise any damage if one does occur, its prime minister said on Sunday. The world's largest memory chip maker and its South Korean labour union will resume pay talks on Monday with a government mediator, in a move that could ease concerns over a potentially disruptive strike at the tech giant that accounts for nearly a quarter of the country's exports. "Just one day of suspension at Samsung Electronics' semiconductor factory is expected to incur direct losses of as much as 1 trillion won ($667.68 million)," Prime Minister Kim Min-seok said after an emergency meeting with ministers on Sunday.
Investors already factor in cyclicality in the chip industry. The bad news is that they’ve frequently gotten their assessments wrong.
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Samsung Electronics Chairman Jay Y. Lee apologised to customers and the public on Saturday over the company's wage dispute with its South Korean labour union ahead of a possible strike that could shake the economy. "I sincerely apologise to customers around the world for causing anxiety and concern due to issues within our company," Lee said in his first public remarks on the dispute, adding that he also "deeply bows in apology to the public". After pay negotiations broke down this week, the labour minister met Samsung Electronics management on Saturday and urged the company to take an active role in resolving the dispute through dialogue.
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A looming 18-day strike at South Korean chip giant Samsung that has triggered worries within the government, rattled foreign investors and threatened global supply chains rests on one crucial question: who should share in the spoils of the AI boom? More than 45,000 workers are threatening to stage the largest strike in the conglomerate's history from May 21, reducing production of memory chips that are crucial components in AI data centres, smartphones and laptops, as Samsung and its union struggle to find a compromise over bonus payouts. Samsung Electronics, which has reaped huge profits from a global memory shortage, has offered to pay generous bonuses to staff.
By Hyunjoo Jin SEOUL, May 15 (Reuters) - A looming 18-day strike at South Korean chip giant Samsung that has triggered worries within the government, rattled foreign investors and threatened global
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Japanese memory chipmaker Kioxia said on Friday it expected operating profit for the April-June quarter to reach 1.3 trillion yen ($8.20 billion) as the artificial intelligence boom boosts chip demand. The maker of NAND flash memory chips reported operating profit rose 92.7% to 870.4 billion yen in the year ended March, beating estimates. Kioxia said it is preparing to list American depositary shares on a U.S. exchange to grow its investor base.
Samsung Electronics' South Korean labour union said on Friday it remained committed to a planned strike starting next week, even after the company proposed resuming pay talks without conditions, sending shares down as much as 5.9%. Analysts attributed the share decline to growing uncertainty over the potential impact of a strike on production and concerns about Samsung's ability to meet its commitments to customers. "There appears to be rising concerns over delivery reliability if the strike takes place and sentiment that rivals could benefit from the uncertainty," said Ryu Young-ho, a senior analyst at NH Investment & Securities.