Samsung Reportedly Begins Cutting Production to Prepare for Strike, Union Rejects Offer to Resume Talks

According to South Korean media reports, Samsung Electronics has entered emergency management mode on its semiconductor production lines one week ahead of a planned general strike. Industry sources revealed that Samsung began reducing production volumes on the 14th in response to the impending strike. Unlike other industries, semiconductors require production volume and quality control to begin before a strike in order to minimize losses. It is understood that Samsung is limiting the number of new wafers entering production lines and reorganizing its product mix to focus on higher-unit-price, state-of-the-art processes. Additionally, union leaders cited a letter from Samsung Electronics stating that the company proposed on Thursday to resume wage negotiations with the union. The National Labor Relations Commission has also called for another round of talks between the two sides on Saturday. However, Choi Seung-ho, head of Samsung Electronics' largest union, said: “If bonus payments and transparency are not institutionalized, there is no reason to continue dialogue.”