Samsung Electronics Drops 3.8% as Labor Talks Break Down
Summary
- Samsung Electronics shares turned lower in intraday trading after labor and management declared a final breakdown in talks over the method for calculating performance bonuses.
- The union said the post-mediation process ended because management did not disclose its position on decision-making, and that it would begin a general strike on May 21 as scheduled.
- Samsung Electronics shares extended losses after news of the collapse in labor talks, falling 3.81%% to 265,000 won from the previous session.
Forecast Trend Report by Period
Samsung Electronics shares turned lower in intraday trading on May 20 after labor and management declared a final breakdown in talks over how to calculate performance bonuses.
The two sides met for a second round of post-mediation talks at the Central Labor Relations Commission at the government complex in Sejong on May 20. They ended the session without an agreement.
The National Samsung Electronics Union said in a notice that management kept repeating that "no decision has been made" and ultimately did not disclose its position. It added that the post-mediation process had ended under the commission's procedures.
The union also said it would begin a legally permitted general strike as scheduled on May 21.
Following news of the breakdown, Samsung Electronics shares swung sharply lower. The stock was trading at 265,000 won, down 3.81% from the previous session.
The shares had risen more than 2% earlier in the day on hopes that labor and management would reach an agreement. They turned negative after the breakdown was announced and extended their decline.
Noh Jung-dong, Hankyung.com reporter dong2@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
