Samsung Electronics (KRX:005930) and its largest labor union are expected to resume negotiations on Monday over wage and compensation issues in a final effort to prevent a strike that officials warn could severely impact the national economy, Bloomberg reported the same day.
Prime Minister Kim Min-seok cautioned that a prolonged shutdown could cost up to 1 trillion won per day, urging both sides to reach an agreement before the May 21 deadline, following which the union has threatened to call for an 18-day walkout, the report said.
The union is seeking higher performance-based bonuses, including allocating 15% of operating profit to worker bonuses, while Samsung has offered 10% of operating profit to bonuses and a one-time special compensation package.
The South Korean government has indicated that it may consider emergency measures if negotiations fail between the company and its union, according to the report.
Shares of Samsung Electronics rose more than 4% in recent trade.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)