UPDATE 3-Samsung Elec fails to clinch deal with union, major strike to begin on Thursday

Samsung Electronics' management and its labour union failed to reach a deal on Wednesday, setting ‌the stage for 48,000 workers to walk off the ‌job on Thursday, threatening the health of South Korea's economy and likely disrupting the global supply of semiconductors.

Under intense pressure from ⁠the ​government and ⁠business groups to avert a strike, the two sides had sought ⁠to hash out a deal on bonus payments before the ​18-day strike begins. Samsung said in a statement that ⁠the union had made unacceptable demands and that accepting them ⁠would ​have shaken the company's fundamental principles.

The union demanded that Samsung abolish a cap on bonuses that stands ⁠at 50% of annual salaries, allocate 15% of annual operating ⁠profit ⁠to bonuses and that these changes be formalised beyond one year.