South Korea's Samsung labor union suspends general strike

From 93% strike mandate to a tentative deal, Samsung's labour standoff enters a new and uncertain phase

Unionised workers at Samsung Electronics in South Korea have said they have decided to suspend plans for a general strike, according to local media.

"We will postpone the general strike scheduled for May 21-June 7 until further notice," the joint headquarters of Samsung Electronics' labour union said in a notice, Yonhap News Agency reported on Wednesday.

However, a group of shareholders said on Thursday they would take legal action against the tentative wage deal, calling it illegal.

The strike had originally been scheduled to begin on Thursday and last for 18 days.

Under the tentative agreement, Samsung will allocate a special semiconductor performance bonus equivalent to 10.5% of business performance earnings, without a cap.

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The deal will be put to a vote by union members from Friday to Wednesday.

Samsung Electronics' unionised workers in South Korea voted in March to authorise a strike, deepening a labour dispute ​over bonuses and raising the risk of production disruptions at the world's ‌biggest memory chipmaker.

A total of 93% of its 66,019 workers who cast ballots approved the strike plan, the union said.

If the workers fail to agree on a deal, they plan to strike for 18 days from ​May 21, the union has said.

The union said the overwhelming support is a "strong ​warning" that management should respond to union demands.