Samsung Workers to Go Ahead With Strike

Summary

Talks between Samsung Electronics and its largest labor union broke down, with a strike planned for tomorrow. Legal restrictions and potential government intervention may limit production disruption. Analysts do not expect a full shutdown.

• Samsung's largest union will go ahead with a strike after government-mediated talks collapsed.
• Key sticking point was performance bonuses for loss-making units.
• Samsung has secured court injunctions restricting illegal worker activities.
• South Korean government hinted at rarely-used labor law to halt the strike for 30 days.
• Analysts downplay risk of full production shutdown.
• Disruption to global chip supply chain is possible but seen as contained.