Samsung Union Postpones Massive General Strike, Puts Wage Deal To Vote

Summary:

• Samsung Union Postpones Massive Strike For Union Vote On Saturday

• Samsung Union Authorizes Massive Strike At Memory-Chip Plants After Mediation Talks Collapse  

Samsung Union Postpones General Strike For Weekend Vote 

Late Wednesday night in South Korea, Samsung and its largest union held last-minute negotiations ahead of a massive general strike.

Vice Minister Kwon Chang-jun of the Ministry of Employment and Labor joined the negotiating table between Samsung and its largest union, a move that appears to have led to a breakthrough.

South Korea's national wire service, Yonhap, reports that the union has postponed plans for a strike tomorrow and will put a tentative wage deal to a vote. 

"We will postpone the general strike scheduled for May 21-June 7 until further notice," Samsung and the union wrote in a joint press release. 

The vote on the tentative wage deal begins on Saturday.

Earlier, the union pressed forward with plans for a general strike at Samsung chip fabs due to the company negotiators' inability to scrap an existing bonus cap, allocate 15% of operating profit to worker bonuses, and formalize these new demands in a wage contract.

Samsung had previously proposed allocating 10% of operating profit to bonuses, along with a one-time special compensation package for workers that is well above industry standards.

Samsung executives argued that the union's demands would be challenging to sustain in the coming years. 

Why the union is striking...

Crisis averted? Well, all eyes are on the weekend vote.

Samsung Union Authorizes Massive Strike At Memory-Chip Plants After Mediation Talks Collapse  

Asian equities extended losses for a fourth straight session, with South Korea's benchmark KOSPI falling about 1% as the market priced in the shock of an imminent labor action at Samsung Electronics.

A full-scale, 18-day strike involving more than 47,000 workers at the world's largest memory-chip maker is set to begin Thursday, raising the risk of production disruptions across the global semiconductor supply chain, which is already tight due to AI data center buildouts.

Samsung Electronics' talks with its largest union collapsed overnight as union negotiators demanded the removal of a bonus cap, allocation of 15% of operating profit to worker bonuses, and that those terms be written into contracts, citing memory-chip maker SK Hynix's 10% profit-sharing arrangement.

Samsung negotiators accepted most of the demands, including a proposed 10% operating profit bonus pool and special compensation, but called the union's remaining requests unsustainable.

"We deeply regret that the post-mediation process has concluded [without resolution] due to delays in decision-making by the management," Samsung Electronics Labor Union Chairman Choi Seung-ho told reporters at the National Labor Relations Commission in the city of Sejong. "We cannot help but feel disappointed that the mediation ended without the company ultimately reaching a decision."

Japan's financial outlet Nikkei Asia reported, "The strike would affect only the company's domestic plants, which are the base of its chipmaking operations." 

The collapse in talks comes as Samsung shares surge on record profits, driven by soaring demand for memory chips, even as hyperscalers are set to deploy $700 billion in capex to build AI infrastructure in the US. Demand is also rising globally as the race for AI compute intensifies.

TrendForce data show that Samsung is the world's largest memory chipmaker, with a 36% market share in DRAM chips and one-third in NAND Flash chips.

Commenting on the market reaction, UBS analyst Joe Dickinson noted:

"Asia was lower for a fourth consecutive session, with the KOSPI dropping as much as 3% on Samsung strike risk before partially recovering."

UBS analyst Kevin Loke commented on the FX reaction:

USDKRW initially traded with an offered tone, with spot opening at 1513.4 and falling nearly 10 won to a low of 1503.8. However, headlines that the Samsung union strike will proceed as planned on Thursday, following a breakdown in talks, pushed the pair back higher toward 1510.

A BoK report to the president estimated a potential impact of up to KRW30 trillion in lost production. For now, USDKRW is likely to remain within a broader 1480–1520 range, with the pair relatively less sensitive to the recent thematic shift toward the global bond sell-off.

Samsung shares fell as much as 4.4% before reversing their losses. Notice "Samsung Strike" headlines in corporate media weighing on shares...

Coverage:

• Samsung Strike Threat Sparks Selling Contagion In Memory Stocks

• Samsung, South Korean Union Resume Talks As Strike Threat Risks Disrupting Memory Chip Fabs

• Samsung, Union Resume Talks After Labor Action Scare; Goldman Says "Korea: Buy"

Bloomberg pointed out, "The government has previously hinted that it could resort to rarely used emergency powers to prevent a strike if the parties fail to reach an agreement. South Korea has invoked the emergency arbitration mechanism only four times since 1969."

Tyler Durden Wed, 05/20/2026 - 10:08

Xi Warns US Against New Iran Strikes, Denounces 'Law Of The Jungle', As Putin Talks Energy Leverage In Beijing Summit

Chinese President Xi Jinping hosted Russian President Vladimir Putin for a high-stakes summit on Wednesday, just days after wrapping up closely watched talks with Trump, which by all accounts failed to produce any Washington-Beijing breakthroughs.

The optics were carefully engineered, and many international outlets observed Putin's state welcome was no less lavish and opulent than Trump's own, with the Russian leader entering Great Hall of the People with full military pomp, children waving flags, and the standard marching band - again, strikingly similar to the red-carpet treatment rolled out for Trump last week.

For example, Al Jazeera writes that "We were expecting a more low-key ceremony, but he actually received an identical welcome treatment as Trump last week." And more:

He had the red carpet rolled out for him; he received a 21-gun salute, as well as children waving Russian and Chinese flags, saying, ‘We warmly welcome you.’

The only difference is who greeted Putin at the airport. With Trump, it was Han Zheng, the vice president, and for Putin, it was Wang Yi, the foreign minister.

via Sputnik

President Xi in his opening remarks delivered a sharp critique of the current geopolitical landscape, warning that the world is at risk of regressing into the "law of the jungle" -  but hailed the Beijing-Moscow alliance as a crucial stabilizing force against what he later termed "all unilateral bullying" in the international arena, which appeared a passing jab at the United States. The very timing of the Putin summit has widely been viewed as a display of leverage.

Among key moments is that Xi called for "a comprehensive ceasefire" in the Middle East and the immediate reopening of the Strait of Hormuz. He characterized the standoff situation in the Persian Gulf as a "critical juncture between war and peace." Xi called for the "unimpeded flow" of crude transit through the strait, as it is in "the common interest of the international community."

"My four-point proposal for maintaining and promoting peace and stability in the Middle East aims to further build international consensus and contribute to easing tensions, deescalating conflict, and promoting peace," Xi said on the Iran crisis according to state news outlet Xinhua. Noticeably absent, however, was mention of finding peace in Ukraine. They agreed that it was "necessary to address the root causes of the Ukrainian crisis."

As for Iran, Xi also explicitly noted that further hostilities in the Middle East were "inadvisable" and that a "comprehensive ceasefire is of utmost urgency." Putin during the summit sought to assure Beijing that Moscow remains a "reliable energy supplier" amid global oil supply shocks, noting their bilateral relationship sits at an"unprecedentedly high level."

He even at one point invoked a classical Chinese proverb to describe his relationship with Xi: "Even if we haven’t seen each other for a day, it feels like three autumns have passed."

Xi Jinping welcomed Putin at Tiananmen Square

The leaders of Russia and China have concluded their talks in Beijing. The two sides signed around 40 bilateral agreements on cooperation in various spheres.

However, the future of the Power of Siberia 2 gas pipeline remains… pic.twitter.com/mnvLmYkwDi

— Visegrád 24 (@visegrad24) May 20, 2026

Below are some quick highlights based on some emerging reporting Wednesday:

Treaty Extension: The signing of a wave of bilateral agreements across technology, trade, and intellectual property, anchored by the extension of the 25-year-old "China-Russia treaty of good neighborliness and friendly cooperation."

The Energy Lifeline: Putin countered by assuring Beijing that Moscow remains a "reliable energy supplier" amid global oil supply shocks, noting their bilateral relationship sits at an "unprecedentedly high level."

The Crude Lifeline: China remains critical in terms of an outside Russian economic lifeline, purchasing nearly 50% of Moscow's total oil exports as Western sanctions continue to squeeze Russia's domestic capital.

On potentially reviving a major stalled Russian gas pipeline project, CNBC wrote:

Russian President Vladimir Putin met with Chinese leader Xi Jinping in Beijing on Wednesday, with the long-stalled Power of Siberia 2 natural gas pipeline on the agenda, as the Iran war disrupts energy supplies.

Kremlin foreign policy aide Yuri Ushakov said Tuesday that the project “will be discussed in great detail between the leaders.”

The planned 2,600-kilometer pipeline would carry 50 billion cubic meters of gas annually from Russia’s Yamal fields to China via Mongolia. Moscow and Beijing signed a legally binding memorandum to advance construction in September 2025, but pricing, financing terms, and a delivery timeline remain unresolved.

Later this year, in November, both Presidents Trump and Putin could attend the APEC summit (Asia-Pacific Economic Cooperation) on Chinese soil. 

via Bloomberg

The White House website hints at APEC summit attendance: "President Trump and President Xi agreed that the United States and China should build a constructive relationship of strategic stability on the basis of fairness and reciprocity. President Trump will welcome President Xi for a visit to Washington this fall. The two countries will support each other as the respective hosts of the G20 and APEC Summits later this year."

In the context of the Iran conflict Trump has lifted some oil sanctions on Russia, making its oil trade a key beneficiary of the US-Israel initiated war. "Russia has emerged as a primary beneficiary of the Middle East conflict due to the massive supply vacuum created by the closure of the Strait of Hormuz," George Voloshin, an independent energy analyst based in Paris, has commented. "Global refiners are desperate for alternative medium-sour crudes, a need that Russia’s Urals grade specifically meets."

Tyler Durden Wed, 05/20/2026 - 10:05

The Building Blocks Of A Global Stagflationary Shock Are Falling Into Place

By Peter de Groot, Head of Macro Strategy at Rabobank

The Inflation Regime That Doesn't Fade

As we noted at the outset of the Gulf conflict, history rarely repeats – but it often rhymes. The closure of the Strait of Hormuz is increasingly revealing a familiar pattern: the building blocks of a global stagflationary shock are falling into place.

A closer look across inflation indicators in advanced economies shows a clear and consistent structure. The upstream impact has been immediate and forceful – exactly as expected in an energy-driven shock. The surge in oil and gas prices has translated into sharp increases in petroleum products such as diesel, and into key industrial inputs like sulphur and fertilisers. Producer price expectations – particularly in energy-intensive sectors such as chemicals, base metals, and wood – have risen rapidly, in many cases outpacing the (initial) post-Covid surge. European industrial surveys point to strong repricing at the start of the production chain.

But further downstream, the picture is more nuanced, for now. While higher input costs are being passed through, the degree of transmission appears more muted than during the inflation surge of 2021–2022. Initial producer price data suggest that firms are adjusting prices, but not with the same breadth or intensity yet. Part of this may be timing – pass-through is always gradual – and whilst the gap between sharply rising price expectations and more modest realized price increases is notable, this could also point to more significant price hikes in the months ahead.

At the consumer level, the divergence is clearer. Inflation has responded, but the impulse remains concentrated in energy and energy-related components. Headline CPI prints have broadly matched expectations, and in some cases even surprised to the downside. Core inflation has remained contained. However, the same sort of slow transmission was seen during the initial phase of the 2021-2022 inflation surge, which, arguably, led policy makers to respond too slowly. So it’s too early to draw any firm conclusions and ‘transitory’ cannot be one of them, for now.

However, there is one crucial difference: the starting point for this shock is materially weaker demand. Labor markets have cooled in many places, albeit not to the same degree. US payrolls growth and job openings have slowed. In the Eurozone, labor market tightness indicators have eased (even as unemployment has stayed at cyclical lows). In the UK, unemployment has moved back to around 5%, vacancies have dropped to a five-year low, and wage growth continues to slow. As Stefan Koopman, our UK analyst, notes, these are not the conditions of an overheated economy requiring aggressive monetary tightening. Instead, they suggest increasing slack – an environment in which firms may struggle to fully pass on higher costs without sacrificing demand.

As a result, while energy prices are likely to push inflation higher in the coming months, the broader macro backdrop does not appear conducive to a sustained second-round inflation spiral. That said, central banks may still feel compelled to respond – more as a signal than out of necessity. In the UK, for instance, a symbolic rate hike cannot be ruled out, as policymakers seek to underscore their commitment to the inflation target, even if the case for a full tightening cycle remains weak.

Policy choices will be critical in shaping the trajectory from here. One of the defining lessons from the 2021–22 inflation episode is that policy responses can amplify shocks. The combination of large-scale fiscal support and ultra-loose monetary policy played a key role in transforming an initial supply shock into a broad-based and persistent inflation surge. Today, the policy environment is different – rates are higher, fiscal space is more constrained – but the uncertainty surrounding the duration of the Hormuz disruption complicates the outlook.

In that context, policymakers may be inclined to assume persistence rather than transience, if only as a precaution. Markets, for their part, have already moved in that direction. Bond yields have repriced sharply higher, particularly at the long end, tightening financial conditions globally. The US 10-year yield rose above 4.67% yesterday, the highest level since mid-January 2025. And although European yields were dragged higher as well, the spread of 10y Treasuries over German bunds has widened from 120bp on 13 April to nearly 150bp yesterday. The rise in US Treasury yields – alongside a widening spread over German Bunds – signals that investors are increasingly focused on both inflation persistence and fiscal sustainability.

This shift in market discipline is not going unnoticed. The IMF has urged Britain to “stay the [fiscal] course” in its ‘Article IV’ consultation. At this week’s G7 meeting, finance ministers and central bankers struck a notably cautious tone, emphasising that any policy support should remain temporary, targeted, and fiscally responsible. Compared to the sweeping interventions seen in recent crises, the response so far has been measured – arguably deliberately so.

Yet this restraint also exposes a tension. While targeted domestic support is relatively straightforward, meaningful international coordination is far more challenging. Countries face competing objectives: protecting domestic growth, ensuring economic security, and enhancing resilience. Measures such as export restrictions may serve national interests but risk undermining collective outcomes. In that sense, the G7’s commitment to cooperation may prove difficult to translate into concrete action.

This suggests a risk of fragile stagflation, with slowing growth alongside persistent inflation. The main danger is not runaway prices but policy errors and poor coordination amid ongoing geopolitical pressures. Much depends on the duration of the Hormuz disruption, as supply shocks may last longer than expected and blur the line between temporary and persistent inflation.

This may also be the reason why we see tentative signs that policymakers are beginning to look beyond purely economic tools. The economic consequences of the Hormuz closure are, after all, rooted in a geopolitical disruption. Discussions within NATO about potentially facilitating maritime passage through the strait underscore a growing recognition that resolving the supply shock itself may be the most effective form of policy response. Although there is no unanimous support yet, according to sources, as per Bloomberg reporting, the fact that NATO is reconsidering an (active) role was seen by investors as a positive development.

Meanwhile, after months of wrangling, the EU finalized the text on the US-EU trade deal, to be signed off by European Parliament and member states before Trump’s 4 July deadline. Reaching a compromise was driven by the overriding objective of “maintaining a stable, predictable and balanced transatlantic partnership”, as put by Cyprus’ minister of commerce. However, the text now includes a 2029 expiration date (unless both sides agree extension). It also includes a clause that would allow the Commission to suspend the deal if tariffs on products using steel and aluminium surpass 15% after 2026 and a ‘pause button’ should the US not keep with its commitments. So let’s see if the US wants to cooperate.

Tyler Durden Wed, 05/20/2026 - 09:50

AI Purge Accelerates: Intuit Reportedly Slashing 17% Of Workforce

Intuit, the company that owns TurboTax, QuickBooks, Credit Karma, and Mailchimp, is reportedly preparing to lay off a staggering 17% of its workforce according to Reuters, which cites an internal memo.

INTUIT TO LAY OFF 17% OF WORKFORCE: MEMO

Initial claims about to print new record low

— zerohedge (@zerohedge) May 20, 2026

Details are scant at the moment regarding the reason for the layoffs, but CEO Sasan Goodarzi sent an email to staff earlier in the day, saying that reducing complexity and simplifying the structure would help it deliver better ​products, to streamline operations and sharpen focus ​on its key bets including its AI efforts.

The company has signed multi-year deals with AI startups Anthropic and ​OpenAI to integrate their AI models into its software and add Intuit's personalized tax, finance, ‌accounting and ⁠marketing capabilities into Claude and ChatGPT.

Bloomberg data shows Intuit's total workforce was around 18,200 in mid-2025. If those figures are still accurate, the layoffs could affect upwards of 3,000 employees.

As of Tuesday's close, Intuit shares were down nearly 40% on the year amid AI fears disrupting the software stocks.

Shares are down 2% in premarket trading.

Analysts are mostly bullish…

Related:

• Meta Axes 8,000 Workers As Zuckerberg Admits AI Is Watching, Replacing Labor

The last day for impacted staff at Intuit in the United States will be July 31 and they will receive 16 weeks of base pay and two extra weeks for every year at Intuit as part of ​the severance package, the ​memo on Wednesday ⁠showed.

Tyler Durden Wed, 05/20/2026 - 09:35

Trump Retains Dominant Influence: 4 Takeaways From Tuesday's Primary Elections

Authored by Joseph Lord, Jeff Louderback, Troy Myers, and Nathan Worcester via The Epoch Times,

Voters on Tuesday headed to the polls in states across the country for some of the most-anticipated battles of the 2026 midterm election season.

May 19 marks the largest day of primary elections yet, seeing ballots cast across six states: Alabama, Georgia, Idaho, Kentucky, Oregon, and Pennsylvania.

The night continued past trends showing that President Donald Trump retains a dominant influence over the Republican Party, as his chosen candidates sailed to victory in race after race—with one Republican incumbent in a major race being defeated.

Democrats, meanwhile, locked in their picks for several key congressional races, as the party works to reclaim the House and possibly the Senate.

Here are the biggest takeaways from the night.

Massie Unseated

Rep. Thomas Massie (R-Ky.) lost his Republican primary to former Navy SEAL Ed Gallrein, concluding one of the most-watched (and most expensive) primary battles of the 2026 election cycle.

President Donald Trump had endorsed Gallrein as part of his effort to get Massie removed from Congress.

Trump was openly critical of Massie and urged people in Kentucky’s Fourth Congressional District to elect Gallrein.

Gallrein had tallied 54 percent of the votes compared to 45 percent for Massie when The Associated Press called the race at 7:54 p.m. ET.

Massie’s ousting is seen as underscoring Republican voters’ support for Trump.

The Kentucky lawmaker, who’s been at odds with Trump over several issues, joins Sen. Bill Cassidy (R-La.) and several Indiana state senators who were defeated by primary challengers backed by Trump in recent weeks.

Gallrein, in his victory speech, vowed to work closely with the president in Congress.

“We have a saying on the family farm that it’s a contact sport,” Gallrein said at an election night event in Covington, Kentucky. “I can tell you that campaigning is one as well, folks.”

Kentucky, Alabama Open Senate Primaries

In Kentucky and Alabama, voters went to the polls to cast ballots in open Senate primaries for seats being vacated by their incumbents.

Rep. Andy Barr (R-Ky.) will face former Democratic state Rep. Charles Booker in the race to replace outgoing Sen. Mitch McConnell (R-Ky.) in the U.S. Senate.

The Associated Press called the Republican primary race for Barr at 7 p.m. ET, an hour after polls closed. Barr won with 60.5 percent of the vote to 30.8 percent for the next closest rival, former Kentucky Attorney General Daniel Cameron.

On the Democratic side, Booker—who previously served as Democrat’s nominee for the post in 2022—won with 46.8 percent of the vote. His closest rival, 2020 Democratic nominee Amy McGrath, trails with 35.8 percent of the vote. The race was called at 9:41 p.m. ET.

The primary marks the first time in 16 years that the state has seen a fully open race for a Kentucky Senate seat. The last such primary took place in 2010, when Sen. Rand Paul (R-Ky.) won his first election to Congress.

McConnell, 84, was first elected to his seat in 1984. He had served as the leader of the Republican Senate conference since January 2007 before agreeing to step down at the start of the current Congress.

Meanwhile, Rep. Barry Moore (R-Ala.), Trump’s pick to replace outgoing Sen. Tommy Tuberville (R-Ala.), will advance to a runoff, as he fell short of the 50 percent needed to forgo the second election.

The Republican he’ll face is still being determined as votes are counted.

Trump has called Moore “a true America First Patriot who’s been with me from the very beginning.”

Georgia Republican Races Go to Runoff

Voters in the Peach State sent Republican candidates in Georgia’s gubernatorial and Senate elections to a runoff.

Trump-endorsed Georgia Lt. Gov. Burt Jones and billionaire businessman Rick Jackson will go to a runoff in Georgia’s gubernatorial primary contest.

Jones and Jackson received 37 percent and 34 percent of the vote, respectively, when the Associated Press called the runoff at 8:50 p.m. ET, as neither managed to garner more than 50 percent of the vote in what became a costly contest for the GOP field.

Georgia’s Secretary of State Brad Raffensperger came in third with 14 percent of the vote.

Another competitive Georgia Republican contest is also on its way to a second round.

As of 9:50 p.m. ET on May 19, none of the major candidates in the state’s Senate GOP primary—Rep. Mike Collins (R-Ga.), Rep. Earl “Buddy” Carter (R-Ga.), and former football coach Derek Dooley—had claimed more than 50 percent of the vote in the Senate primary.

At 9:44 p.m. ET, the Associated Press declared that Collins will advance to the runoff. It later declared that Dooley will face him in that race.

As of 11:52 p.m., Collins had received 40.5 percent of the vote. Dooley followed with 30.1 percent, while Carter trailed in third with 25.2 percent.

The runoff was expected ahead of Election Day, as polling generally did not show any candidate with a majority.

Bernadette Breslin, the national press secretary for the National Republican Senatorial Committee (NRSC), told The Epoch Times in an exclusive statement that “Republicans are united behind defeating Ossoff and retiring his record of failure for Georgia.”

Trump has not given an endorsement in the Senate race.

The runoff elections are set for June 16.

Pennsylvania Democrats Make Picks in Key Swing Districts

While observers’ focus was largely centered on Republican races during this round of voting, Democratic candidates were also locked in for several key swing districts during the May 19 elections.

It’s unclear whether Democrats can overcome Republicans’ steep 53-seat majority in the U.S. Senate, and the party is instead focusing its major efforts this cycle on the House, where Democrats are widely expected to reclaim the majority by observers.

In Pennsylvania, three Democratic candidates endorsed by Gov. Josh Shapiro won their elections, including Janelle Stelson, Bob Harvie, and Bob Brooks.

The three candidates will take on Republican opponents in the November general election, in seats that include some of the party’s top targets.

Stelson will go up against Rep. Scott Perry (R-Pa.), Harvie against Rep. Brian Fitzpatrick (R-Pa.), and Brooks against Rep. Ryan Mackenzie (R-Pa.).

Shapiro himself is seeking reelection this year, running for the gubernatorial nomination unopposed. Shapiro’s approach to politics has been viewed as moderate by voters in the state, propelling him to a sweeping double-digit victory in his 2022 election, giving his endorsement some weight in state politics.

Tyler Durden Wed, 05/20/2026 - 09:05