Samsung employees are starting to hit a bad time

More than 47,000 workers at Samsung Electronics are planning to go on strike for 18 days following bonus negotiations between the company and its union. The strike is set to begin on Thursday, and will be limited to Samsung’s domestic equipment manufacturing plants, raising concerns about the already overproduction of memory chips amid ongoing shortages.

While the union agreed to a settlement with the South Korean National Labor Relations Commission (details of which have not been made public), management at Samsung Electronics rejected the agreement without explanation. Nikkei Asia reports.

As part of its demands, Samsung is seeking employee bonuses equal to 15 percent of the company’s profits, removing the cap on bonuses of 50 percent of annual salary. The talks ended at a time of historic profits for Samsung, after establishing itself as the world’s largest manufacturer of memory chips.

Both Samsung and the labor union have been urged by South Korean government officials to agree in the days leading up to the strike, with Prime Minister Kim Min-seok reportedly warning that the government could take action to prevent the strike. South Korean law allows for “emergency transitions” to take place if conflicts threaten the economy or daily life. Samsung is the largest company in South Korea, controlling about 23 percent of exports and 26 percent of its total market, according to Price CNBC.