South Korean government plans to prevent a potential strike by Samsung workers

South Korea Prepares “Emergency Arbitration” in Case of Samsung Strike

The country’s authorities announced that they will use all available tools—from negotiations to emergency arbitration—to prevent a potential labor strike by Samsung Electronics employees and minimize possible damage. Reuters cites a statement from Prime Minister Kim Min‑sok.

What Is Planned
Step Description
Negotiations On Monday, talks with union representatives will resume with the involvement of a state mediator.
Emergency Arbitration Order The Ministry of Labor and Employment may issue an order prohibiting mass actions for 30 days. During this period, arbitration will be held over disputes between the company and unions.

Why It Matters
- Economic Weight of Samsung
- The company accounts for nearly 25 % of South Korea’s export turnover and 26 % of the country’s stock market.
- It employs more than 120,000 people, and its supply chain includes about 1,700 companies.

- Potential Losses
- The prime minister estimated direct losses from a one‑day semiconductor production halt at up to 1 trillion won (≈ 667 million USD).
- A full line shutdown could lead to months of downtime, with economic damage potentially reaching 100 trillion won.

Union Reaction
The union stated it would not accept compromises that are unfavorable to workers. It emphasizes its readiness to continue the struggle as long as conditions remain unjust.

Conclusion
South Korean authorities view emergency arbitration as a last “extraordinary” step to keep Samsung from striking and protect the country’s economy. In the coming days, negotiations are expected to resume in an effort to find a solution that satisfies both parties.