Samsung Faces $20B Loss as 41,000 Workers Plan Strike Over Bonuses

Samsung faces a major labor strike as union workers demand higher bonuses. Negotiations collapsed after a 17-hour session. The union plans to strike from May 21 to June 7.

Union demands 15% of operating profit

Workers are demanding 15% of annual operating profit, which is about $30 billion, in bonuses. They have called retention contracts 'slave contracts'. A previous rally on April 23 reduced memory fab output by 18.4% and foundry output by 58.1%.

An 18-day strike could cause $20 billion in losses and take 36 days to restore production. The union represents 41,000 workers. Talent may move to rival SK hynix.

The strike could severely impact Samsung's semiconductor operations. The company must decide whether to meet worker demands or absorb significant financial losses.