Samsung Electronics and its largest labor union are resuming high-stakes negotiations on Monday in a critical bid to avert a looming strike.
First reported by Bloomberg, the talks over wages and bonuses come after South Korea's Prime Minister warned that a production halt could severely damage the national economy.
Management and union representatives at the world's largest memory chipmaker meet as the company's operating profits surge due to global AI infrastructure demand.
The government-mediated session includes the state labor relations commission head. The meeting occurs three days before the union's May 21 deadline, after which workers plan an 18-day walkout if no deal is reached.
Prime Minister Kim Min-Seok urged both sides on Sunday to achieve results, calling it virtually their last chance.
Kim estimated that a strike halting Samsung chip factories could cost up to 1 trillion won ($668 million) per day.
He signaled for the first time that the government would use all available measures, including emergency powers, to protect the economy if a strike occurs.
Amid tensions, Samsung Electronics Chairman Jay Y. Lee issued a rare weekend apology. Returning from overseas, he emphasized unity, saying union members and management are part of the same corporate family.
Prior government-mediated talks broke down earlier this month due to a gap between worker demands and executive offers.
The union pushes to remove bonus caps, requesting 15% of operating profit allocated to worker bonuses and formalized in contracts.
Samsung executives countered with 10% of operating profit and a one-time special compensation, arguing the union's demands are unsustainable long-term.
