Samsung Shares Slide as Union Maintains Strike Plan
Samsung Electronics shares fell over nine percent after the labor union confirmed plans for an eighteen-day strike starting May 21. Analysts warn the industrial action could cost the company up to 31 trillion won in operating profit while government officials urge both sides to resume pay negotiations.
Samsung Electronics Co Ltd shares fell 9.3% on Friday morning as its largest labor union reaffirmed plans for an 18-day strike. The walkout, scheduled to begin May 21, follows the collapse of government-mediated negotiations over pay and bonus structures. Investors fear a prolonged stoppage will disrupt global memory chip supply and erode the firm’s competitive edge.
### Production Risks and Financial Fallout The labor union in South Korea remains committed to the strike despite a late proposal from management to resume unconditional talks. Union leaders expressed willingness to negotiate after June 7 but will proceed with the walkout starting Tuesday morning. The dispute centers on a perceived bonus gap between Samsung and rival SK Hynix Inc.
