The head of Samsung Electronics' (KRX:005930) largest labor union, Choi Seung-ho, said a planned strike may be preventable if management improves transparency around compensation, citing growing distrust among employees and concerns over talent leaving for competitors, Nikkei Asia reported Tuesday.

Cho criticized the company's discretionary bonus adjustment system as "opaque."

Talks between the 70,000-member-strong union and management have resumed under the mediation of the Central Labor Relations Commission under South Korea's Ministry of Employment and Labor, the report said.

The government's intervention suggests its concern about the possible economic impact of a strike at one of the country's key exporters, the report said.

The union has warned of an extended strike if negotiations fail and is pushing to remove caps on bonuses tied to company performance. Bonuses are limited to 50% of annual pay under the current system, but the union is seeking a revised scheme that would allot up to 15% of each division's operating profit with no upper limit, it said.

Shares of Samsung Electronics fell over 2% in recent trade.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)