SEOUL (dpa-AFX) - Samsung Electronics (SSNLF, 005930.KS,SMSN.L,005935.KS) and its South Korean labour union are set to resume pay negotiations on Monday, with a government mediator stepping in to facilitate the talks, according to multiple media reports.
Chairman Lee Jae-yong of Samsung Electronics reportedly issued a public apology ahead of the discussions, acknowledging concerns over the company's internal disputes. He urged unity within the organization, emphasizing the need to move forward together despite recent tensions.
In response, Choi Seung-ho, head of the union, reportedly stated that many employees joined the labour group because their trust in the company had eroded. He stressed that restoring this trust should be a priority in the upcoming negotiations.
According to the reports, the union has demanded fixed performance bonuses equivalent to 15 percent of the operating profit generated by Samsung's semiconductor division, along with the removal of the existing payout cap. Management, however, has proposed maintaining the current excess profit incentive system. Under this plan, bonuses would be calculated based on either 10 percent of operating profit or economic value added (EVA).
Additionally, the reports said that the company has suggested introducing a special compensation system, which it claims would help establish a more flexible incentive structure. The outcome of Monday's talks will be closely watched, as they are expected to play a key role in shaping labour relations at one of South Korea's most influential corporations.
005930.KS closed Friday regular trading at KRW 270,500 down KRW 25,500 or 8.61%.
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