Samsung Electronics could face its first labor strike in 50 years as wage talks with labor unions fell apart.

Following months of back and forth negotiations, representatives of the labor union filed for arbitration to Korea’s National Labor Relations Commission, which is a government agency under the Labor Ministry (via Korea Herald).

The move gives Samsung 10 days to reach an agreement, failure to comply with will result in a strike and a pause in several Samsung businesses like semiconductor chips and electronics.

samsung logo ces booth featured

The Korean company thus finds itself in a tough spot, already hit hard by the semiconductor shortage that has led to scarce inventories and delays in shipments. Take its flagship Galaxy S22 series, for example, whose deliveries has been pushed ahead by a couple of weeks.

“Although (the union) has been through the 15 rounds of talks (with Samsung), the management had unilaterally delayed the progress in negotiation in a deceitful manner,” National Samsung Electronics Labor Union, said in a statement.

The NSELU currently stands 4,500 members strong and negotiations between it and Samsung commenced in October. They were a first for the company with appeals concerning a wage hike, COVID-19 compensation, and special leave options, all of which fell on deaf ears.

Samsung, in a draft agreement in March, had suggested a wage hike of up to 7.5 percent, including a 4.5 percent basic pay raise, but excluded the labor unions’ calls.

“We have come to file an arbitration with the NLRC based on our observation that our talks will no longer proceed. Our future direction will depend on the willingness of Samsung to negotiate,” NSELU added.

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