SEOUL, May 5 (Reuters) – The board chairman of Samsung Electronics has urged unionised workers to resolve pay disputes with management, warning that a planned strike could hurt investors and employees and have “serious consequences” for the Korean economy. In an internal memo to employees on Tuesday, Shin Je-yoon said he was “worried about losing […]
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Samsung Electronics’ board chairman urges union to resolve pay disputes
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SEOUL, May 5 (Reuters) – The board chairman of Samsung Electronics has urged unionised workers to resolve pay disputes with management, warning that a planned strike could hurt investors and employees and have “serious consequences” for the Korean economy.
In an internal memo to employees on Tuesday, Shin Je-yoon said he was “worried about losing market leadership amid fleeing customers and falling competitiveness” if strikes disrupted deliveries and production, according to a Samsung statement.
Such disruption at the chipmaker, South Korea’s largest company by revenue, could trigger capital outflows, a drop in national tax revenue, and a weakening of the won currency, he said.
“It’s time to resolve the problem through sincere dialogue,” Shin said.
Unions at the chipmaking giant have threatened industrial action to secure a bonus increase, with plans to strike for 18 days from May 21.
(Reporting by Heejin KimEditing by Ed Davies)