(Seoul=NSP NEWS) = Samsung Electronics(005930) and its labor union failed to reach an agreement in the post-mediation process conducted under the arbitration of the National Labor Relations Commission.

Samsung Electronics management and labor held post-mediation talks for two days on the 11th and 12th, but the union declared a breakdown after the meeting on the following day.

The union stated that it demanded the abolition of the performance bonus cap and the transparency and institutionalization of the bonus calculation method, but these demands were not met.

In response, Samsung Electronics expressed regret, stating, “The government supported the consultations by presenting various alternatives based on the arguments of both labor and management, but the union declared a breakdown.”

Samsung Electronics explained that the labor union is rejecting the company’s flexible institutionalization measures based on business performance and is adhering only to rigid institutionalization.

The company stated that this decision could cause worry and anxiety among employees, shareholders, and the public awaiting the conclusion of negotiations.

However, Samsung Electronics maintained its stance that it would continue dialogue until the very end. Samsung Electronics stated, “We will continue our efforts to prevent the worst-case scenario through sincere dialogue.”

The union plans to hold a general strike for 18 days, from the 21st of this month to the 7th of next month.