Samsung, labour union meet again as Seoul threatens to intervene to block strike

Samsung Electronics and its South Korean labour union began another round of government-mediated talks on Tuesday to break an impasse in negotiations over pay and bonuses and avert the biggest strike in the tech conglomerate's history.



The two sides are under mounting pressure to prevent an imminent strike by 45,000 workers that could hurt the Korean economy and global supply chains by disrupting chip production. South Korea's prime minister threatened over the weekend to step in through emergency arbitration to resolve the crisis.



Samsung and the labour union remained far apart during talks on Monday, the chairman of the National Labor Relations Commission told reporters. But he said on Tuesday the two sides are narrowing some differences and there is still a possibility that they could reach an agreement.



Samsung and the labour union did not immediately respond to requests for comment.



The heavyweight conglomerate's shares fell 2.5% on Tuesday, while the broader market slid 3.2%.



South Korean business groups urged the union on Monday to drop its strike plan and the government to "immediately" invoke emergency arbitration to suspend the strike.