Core Viewpoint - The negotiations between Samsung and its labor union regarding performance pay and other issues have broken down, leading the union to announce a transition to a joint struggle system and initiate procedures for a strike [1][3]. Group 1: Negotiation Breakdown - Samsung stated that it made concessions based on union demands, but unreasonable requests from the union led to the breakdown of negotiations [3]. - The company announced the breakdown and details of the negotiations through an internal bulletin on March 4, indicating that efforts to improve employee treatment were made but ultimately unsuccessful [3]. - The union has indicated that a strike could result in a loss of 10 trillion KRW for the company, while the workers would only face a loss of 400 billion KRW, suggesting a strategic advantage for the union in the event of a strike [3]. Group 2: Key Issues in Negotiations - The main point of contention in the negotiations was the reform of the performance bonus system, with the union demanding the removal of the 50% cap on the excess profit distribution bonus (OPI) based on Economic Value Added (EVA) [4]. - The company proposed to maintain the 50% cap on OPI but allowed for a choice between calculating OPI based on either EVA 20% or operating profit 10% [4]. - The company also offered a total salary increase rate of 6.2% and proposed additional bonuses for the semiconductor division if sales and operating profits reached the highest in the domestic industry [4].

Group 1 - The core issue in the negotiations between Samsung and its labor union revolves around the performance bonus system reform, with the union demanding the removal of the 50% cap on the excess profit distribution bonus (OPI) based on Economic Value Added (EVA) [5] - Samsung proposed to maintain the 50% cap on OPI but allowed for a choice between calculating OPI based on either 20% of EVA or 10% of operating profit, while also offering a total salary increase rate of 6.2% [5] - The union has indicated that a strike could result in a loss of 10 trillion KRW for the company, while the workers would only face a loss of 400 billion KRW, suggesting a strategic advantage for the union in the event of a strike [5] Group 2 - Since December of the previous year, there have been eight rounds of wage and collective agreement negotiations, but significant differences remain unresolved, leading to the union's announcement of a negotiation breakdown [5] - The union plans to conduct a vote among its members regarding potential dispute actions, including strikes, if a majority agrees [5] - Samsung's semiconductor division is expected to offer a special bonus of 100% of OPI for achieving the highest sales and operating profit in the domestic industry this year [5]