Finance minister says Samsung labor talks breakdown 'deeply regrettable'

Finance Minister Koo Yun-cheol on Wednesday expressed concern over the breakdown of wage talks at Samsung Electronics, saying the government will spare no effort to help the two sides reach an agreement and avoid a possible walkout. Koo made the remarks in a social media post after the labor union and management at Samsung Electronics failed to narrow their differences over performance-based bonuses following government-led mediation talks, which ended in the early hours of Wednesday. "The government finds it deeply regrettable that labor-management negotiations at Samsung Electronics failed to reach an agreement despite the government's mediation," Koo said in the post. "There should never be a strike," Koo said, adding that the government will make every effort to help settle the dispute through principle-based negotiations under all circumstances. "Samsung Electronics is an important company that is drawing global attention," Koo pointed out. "Considering the current business environment and its impact on the national economy, both the labor union and management should continue principle-based negotiations," he added. The union has demanded performance bonuses equivalent to 15 percent of operating profit, along with the removal of the payout cap and the formal institutionalization of the bonus system amid the company's record-breaking earnings during the global artificial intelligence (AI) boom. Management, meanwhile, proposed allocating 10 percent of operating profit to bonuses and offering a one-time special compensation package that it said exceeds industry standards.