Wage negotiations between management and a labour union at Samsung Electronics broke down, industry sources said on Tuesday, leading the union to start the process to go on strike.
The tech giant’s management and the National Samsung Electronics Union (NSEU) held the sixth round of talks over this year’s wage increase earlier in the day, but the negotiations broke down as the two sides failed to narrow down their differences, according to the sources, reports Yonhap news agency.
The management has suggested a 2.5 per cent pay raise, but the NSEU has come up with an 8.1 per cent increase.
The NSEU said it plans to bring the dispute to the National Labor Relations Commission for arbitration later in the day.
After the claim is filed at the state commission, it will step in to mediate for a period of 10 days.
If the two sides fail to reach an agreement even after the 10 day-mediation, the union is given the legal authority to initiate a strike.
The NSEU is the biggest single labor union at Samsung Electronics with some 17,000 members.
Samsung Electronics has not had a strike since its founding in 1969.