THE Samsung Electronics union said today that it would suspend a planned strike and put a tentative wage deal with management to a vote, alleviating immediate concerns about the operation of the world’s largest memory chip maker.

The announcement followed a last-minute government-mediated negotiation with management over the level of workers’ bonus payouts to reflect soaring profits fuelled by the global boom in artificial intelligence.

Union leader Choi Seung Ho told a televised briefing that the union agreed not to go ahead with an 18-day strike that he had earlier said would start tomorrow. He said union members would vote on the tentative agreement from May 22 to 27.

“We would like to express our apologies to the people for causing concerns due to our internal conflicts,” Mr Choi said. “The agreement is the result of our all-out struggle spanning about six months.”

Senior Samsung official would be a starting point for more stable relations with the union.

“The company will faithfully implement the terms of this agreement and will make its utmost efforts to promote labour–management co-operation,” he said.

Government officials earlier had threatened to invoke rarely used emergency powers to force a settlement at Samsung, as the planned strike looked set to hit global semiconductor supplies and the country’s trade-dependent economy. The union represents more than 70,000 workers.

Earlier today, the union and the management held each other responsible for a failure to reach a deal, after their previous round of negotiation ended without a breakthrough. 

Mr Choi accused management of refusing to accept a government-mediated proposal, whose details he refused to disclose, while the management accused the union of calling for excessive compensation packages for workers at loss-making units.