Samsung Electronics' management and labor union failed to reach a deal in post-mediation talks that are a turning point in negotiations over performance bonuses. The National Labor Relations Commission said it recessed the post-mediation meeting at 12:30 a.m. on May 20. The two sides will return to the negotiating table at 10 a.m. the same day. With the union having set May 21 for a general strike, this round of post-mediation talks is effectively the last chance for a deal.

The meeting was the second day of the second post-mediation session. After talks on the first day ran from 10 a.m. to 6:20 p.m. on May 18, the two sides continued marathon negotiations from 10 a.m. on May 19. The recess was decided after the gap on key issues failed to narrow past midnight. The two sides also failed to find common ground in the first post-mediation session held earlier.

The issues include scrapping a performance bonus cap set at 50 percent of annual pay, the allocation ratio for the bonus pool and whether to institutionalise any agreement. Park Su-geun (박수근), chairman of the commission, met reporters later in the day and said, "One or two issues are not being sorted out, and not narrowing." Park said the company is reviewing a settlement proposal he presented, while the union is waiting.

Scrapping the bonus cap is reported to have drawn some agreement. The company presented a plan to distribute an additional portion of operating profit as performance bonuses. If the company agrees to Park's settlement proposal, the union will put it to a vote of its members. If the vote is rejected, it will lead directly to steps toward a strike.

The gap is wide on the allocation ratio. The union is demanding that 70 percent of the bonus pool be shared across the entire semiconductor division and 30 percent be paid differentially based on performance by business unit. The aim is to distribute bonuses evenly even to loss-making units. The company says the common pool ratio should be lower, citing performance-based personnel principles. The union said the company presented a 60 percent common and 40 percent business-unit plan in prior meetings.

If the company rejects Park's settlement proposal, the commission will present its own mediation plan. If both sides accept and sign it, it will carry the same legal effect as a collective agreement. If either side refuses, the talks will collapse and are likely to lead to a strike.

The company also disclosed measures for a potential general strike. In an official letter sent on May 19 to the Samsung Electronics chapter of Samsung Group's National Samsung Electronics Labor Union and the National Samsung Electronics Labor Union, Samsung Electronics stated that the required essential workforce per day during a general strike would be 7,087 people. It listed 2,396 for safety work and 4,691 for security work. The security work includes 2,454 for memory, 162 for System LSI, 1,109 for foundry and 566 for the Semiconductor Research Institute.

Separately, the Seoul Central District Court on May 18 granted Samsung Electronics' request for an injunction to ban illegal industrial action. It ruled that staffing for safety protection facilities, preventing facility damage and preventing product deterioration should be maintained at normal levels. The union has asked the company to assign non-union workers first so that the number of workers whose basic rights are restricted can be minimised.