Samsung granted court injunction against imminent strike action in last-minute reprieve — talks resume as unions barred from occupying or locking facilities, obstructing workers

Source: Tom’s Hardware

Image credit: Getty / Bloomberg

Court Injunction

A South Korean court granted Samsung a last‑minute injunction that limits the scope of the strike action planned by disgruntled employees later this week. The Suwon District Court ruled on Monday, partially accepting Samsung’s request to neuter the planned industrial action, forcing both sides back to the bargaining table for further talks.

Source: The Financial Times

Impact on Share Price

Samsung began winding down production at its facilities in anticipation of the walkout. Following the ruling, the company’s share price rose in early trading, reflecting the market’s view that the injunction weakens the potential impact of the strike and improves Samsung’s bargaining position.

Resumption of Talks

Samsung Electronics and the labour union have resumed negotiations to avert the industrial action. Approximately 45,000 workers were expected to participate, though it is unclear how many will be affected by the court ruling if the strike proceeds.

A union statement reported by Reuters indicated that the action would not be halted if no deal is reached, but the union would “engage seriously” in negotiations.

Source: Reuters

Potential Costs

Previous estimates suggested the strike could cost Samsung up to 4 trillion won in revenue, with some analysts projecting losses of 1 trillion won (≈ $700 million) per day. Workers have already rejected a one‑time bonus offer of $340,000 per employee.

For comparison, rival SK hynix plans to pay out about $477,000 per employee this year and $900,000 next year. Samsung’s bonuses are guaranteed for the next 10 years, making its current offer appear less competitive.

Government Response

South Korea’s government has pledged to use all available options to prevent the strike, including issuing an emergency arbitration order. Such an order could suspend strike action for up to 30 days while mediation and arbitration are conducted by the Labor Relations Commission.