Samsung Electronics' labor and management failed to bridge their differences over performance bonus payments on the second and final day of post-mediation talks, leading to the collapse of negotiations.

With two attempts at government mediation also proving unsuccessful, the possibility of a full-scale strike, which could result in tens of trillions of won in damages, is becoming increasingly likely.

The government maintains that further mediation is possible, but with the union firm on its strike stance, there are whispers of the possibility of invoking emergency mediation, the last resort.

Choi Seung-ho, chairman of the pan-union Samsung Electronics branch, declares the failure of the second post-mediation talks for the 2026 wage agreement at the National Labor Relations Commission in Sejong City on the morning of May 13. [Yonhap News]

Samsung Electronics' labor and management held their second post-mediation meeting for the 2026 wage agreement at the National Labor Relations Commission in Sejong City, but despite a 17-hour discussion from 10 a.m. on the 12th to 3 a.m. on the 13th, they were unable to reach an agreement.

Choi Seung-ho, chairman of the pan-union labor union, Samsung Electronics branch, the largest union at Samsung Electronics, told reporters after the meeting on the morning of the 13th, "The differences between labor and management could not be narrowed, so we requested a mediation proposal, and after waiting for nearly 12 hours, the proposal actually represented a step backward." He added, "We have declared the final breakdown of post-mediation."

Chairman Choi further stated, "The mediation proposal indicated that the existing OPI (Outstanding Profit Incentive) system would be maintained as is, rather than ensuring transparency in performance bonuses," and that "the 50% cap on performance bonuses was also maintained."

He added, "We demanded the abolition of the performance bonus cap, as well as transparency and institutionalization, but these points were not achieved."

Regarding the National Labor Relations Commission's participation in extending the post-mediation period, he said, "It ended today." When asked about plans for autonomous negotiations with the management, he replied, "We are not considering such things," but added, "We are willing to listen if the company brings a proper agenda."

He explained that following the breakdown of negotiations, they would focus on responding to the legal injunction filed by the management to prohibit illegal labor disputes.

Chairman Choi stated that 41,000 union members have expressed their intention to participate in the general strike scheduled for the 21st, and asserted, "Based on the current agenda from the management's side, it will exceed 50,000 people."

Chairman Choi further emphasized, "I believe there is no point in waiting any longer," and "We have no intention of engaging in illegal labor disputes. We plan to proceed with legal labor disputes."

Post-mediation is a procedure conducted again with the consent of labor and management to resolve labor disputes after the initial mediation has ended.

The National Labor Relations Commission plays the role of mediator in negotiations, and if a mediation proposal is reached, it has the same legal effect as a collective agreement.

Choi Seung-ho, chairman of the pan-union Samsung Electronics branch, heads to reporters to state the union's position during the second post-mediation meeting at the National Labor Relations Commission in Sejong City on May 12. [Yonhap News]

Samsung Electronics' labor and management, who failed to reach an agreement during the National Labor Relations Commission's mediation held in February-March and had their mediation suspended, resumed negotiations through the post-mediation process for two days starting on the 11th.

Following the first meeting on the 11th, which lasted about 11 hours and 30 minutes, the second meeting on the 12th also continued for 17 hours, but ultimately ended in failure.

Although the National Labor Relations Commission stated its intention to continue its efforts to achieve an agreement without a set deadline, the mediation prospects have become significantly bleak with the union's declaration of a final breakdown.

After the meeting, the National Labor Relations Commission stated, "We provided support for discussions by proposing various alternatives based on the claims of both labor and management. However, the gap between the claims of both parties was large, and the union requested the suspension of post-mediation, so we decided to conclude this post-mediation without presenting a mediation proposal."

However, it added, "If both labor and management agree and request further post-mediation, we can support additional post-mediation at any time."

If a full-scale strike actually occurs, the estimated damages will exceed 40 trillion won, and more critical medium- to long-term damages such as customer exodus during the semiconductor super-cycle and damage to the supply chain are expected.

Some speculate that the government may invoke emergency mediation powers to prevent such a situation.

Emergency mediation is a system based on Article 76 of the Labor Union and Labor Relations Adjustment Act (Labor Union Act), which the Minister of Employment and Labor can invoke as an exceptional mediation procedure when a dispute is likely to endanger the daily lives of citizens or significantly harm the national economy.

If emergency mediation is invoked, dispute activities will be prohibited for 30 days, and mediation and arbitration procedures by the National Labor Relations Commission will be carried out.

Past instances of emergency mediation being invoked include four cases: the strike at Korea Shipbuilding & Engineering Corp. in 1969, the Hyundai Motor Company strike in 1993, and the Asiana Airlines and Korean Air pilots' strikes in July and December 2005.

A representative from the National Labor Relations Commission stated, "This is not something we are reviewing," drawing a line.