The Korean Employers Federation (KEF) expressed relief on May 20 after Samsung Electronics and its labor union reached a tentative agreement on performance bonuses. The KEF stated, "It is fortunate that an agreement was reached, avoiding the worst-case scenario of a strike."
In a statement released around 11 p.m., the KEF noted that the agreement is significant as it reflects both parties stepping back to find common ground amid a challenging business environment characterized by intensified competition in the semiconductor industry and growing uncertainties in the global market.
However, the KEF voiced concerns about the potential spread of the union's demands for performance bonuses across the broader industry.
The KEF emphasized, "This agreement reflects Samsung Electronics' unique circumstances, and the labor sector should not generalize it to promote excessive demands for performance bonuses across the industry. We hope that both labor and management will use this agreement as a stepping stone to quickly resolve uncertainties and establish a rational labor-management relationship."
Samsung Electronics and its labor union dramatically signed the tentative agreement about an hour and a half before the union's planned general strike on May 21.
The union has decided to postpone the strike and will conduct a vote among its members on the tentative agreement from May 22 to May 28.
* This article has been translated by AI.
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