SEOUL (dpa-AFX) - Shares of Samsung Electronics Co. Ltd. (SSNLF, 005930.KS) jumped around 8% in South Korean trading after the company reached a tentative deal with labor union, averting an 18-day strike, which was planned to start on Thursday.
The South Korean technology giant stated that labor and management have reached a tentative agreement on wages and the collective bargaining agreement.
The largest union at Samsung Electronics, which represents nearly 48,000 workers, also confirmed that plans for a potential strike between May 21 and June 7 has been suspended while members vote on the deal from May 22-27.
Samsung's more than 47,000 workers were likely to begin the strike on Thursday following the failure of South Korean government-mediated wage negotiations between the company and its labor union.
The union's core issue remained bonus disputes. The talks involved union's demands over performance-based bonuses and the company's pay structure, as well as the removal of bonus payout caps and greater transparency.
It was expected that that the possible disrupt in Samsung's memory and AI chip production following the days-long strike would have a massive impact on the company's operating profit and shipments.
In the latest first quarter, the world's largest memory chipmaker by sales achieved a surge in revenue and operating profit through AI technology innovations and proactive market response.
In South Korea, Samsung shares were trading at 297,250.00 won, up 7.7 percent.
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