The world’s leading memory chip manufacturer, Samsung, reported a substantial rise in operating profit, driven by the growing demand for AI-based semiconductors. Management and union representatives will convene to discuss wages and compensation.
According to a Bloomberg report, the president of the government’s labor relations commission will take part in the discussions, occurring just three days ahead of the union’s May 21 deadline to finalize an agreement before entering an 18-day walkout.
Jay Y. Lee, chairman of Samsung Electronics, expressed regret over the company’s “internal issues” this past weekend.Also Read: A medieval book in Rome has been hiding the oldest English poem
Earlier this month, talks mediated by the government fell through as management and the union were unable to align on worker demands and executive offers.
Bloomberg also noted that the workers’ group is advocating for an increase in performance-based pay, attributed to rising profits from AI infrastructure needs. Labor leaders are urging Samsung to formalize these terms in employment contracts, eliminate the existing bonus cap, and provide workers with bonuses equivalent to 15% of operating profit.
In addition to a one-time special compensation package exceeding industry standards, Samsung has proposed allocating 10% of operating profit for bonuses. Company executives have indicated that meeting the union’s expectations in the long run could be difficult.
(Edited by : JUVIRAJ ANCHIL)
