A labour dispute at Samsung Electronics moved into a critical stage on Friday after the company’s union said it would begin a two-day mediation process with management over wages, while maintaining plans for a broader strike if negotiations fail.

The union said mediation sessions would take place on May 11 and 12 following weeks of escalating tensions over pay and bonuses at the South Korean technology giant. Workers have been pressing for higher bonus payments and have already taken industrial action as negotiations with management continued.

In a statement released after talks on Friday, the union said it was prepared to proceed with a planned general strike if the mediation process did not produce a satisfactory outcome. The group has threatened an 18-day strike beginning May 21, raising concerns about disruptions at one of the world’s largest chipmakers.

Representatives from the union, company management and the government met on Friday as officials from South Korea’s Labour Ministry attempted to steer both sides toward a settlement. According to the union, ministry officials pledged “full support” for discussions aimed at resolving the dispute.

The labour standoff has drawn growing attention in South Korea because of Samsung Electronics’ central role in the country’s economy and semiconductor industry. Earlier in the week, the chairman of Samsung’s board urged unionised workers and management to settle the disagreement, warning that a prolonged strike could carry “serious consequences” for the Korean economy.

Samsung Electronics and the Labour Ministry did not immediately respond to requests for comment following Friday’s developments.

Investors appeared encouraged by signs that formal mediation was moving ahead. Shares of Samsung Electronics rose 2.6% in after-hours trading in Seoul after news of the talks emerged.

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The dispute comes at a sensitive moment for the company as it navigates pressure in the global chip sector while facing increasing labour activism at home. For now, attention remains fixed on whether the mediation process can narrow differences before the union’s proposed strike date later this month.