Samsung labor talks stall over 15% operating profit bonus, strike risk grows

Samsung Electronics labor and management failed on May 13 to narrow differences over whether to institutionalize bonuses as a fixed share of operating profit. The union demanded that 15% of operating profit be paid annually as performance bonuses, while management said it could not promise future profits in advance. A mediation proposal from the National Labor Relations Commission aimed to provide special compensation comparable to competitors only when profits are high, but the union declared talks broken down, saying it was a step back from the company’s offer. Management said it is difficult to permanently lock part of operating profit into fixed costs amid AI-driven market upheaval. The situation is also weighed by global big tech firms such as Alphabet spending nearly twice their annual operating profit on investment this year. Source: rss.donga.com