In South Korea, the largest labor union at Samsung Electronics has announced an indefinite strike after a failed three-day walkout in a dispute over pay and bonuses. The strike involved 6,000 workers from the company’s semiconductor division, according to the union.
The National Samsung Electronics Union (NSEU) stated that its 31,000 members, representing nearly a quarter of the company’s workforce in the country, will begin the indefinite strike on July 10. This strike marks the largest labor action in the company’s 55-year history.
In response to the strike, Samsung Electronics expressed its commitment to engaging in good-faith negotiations with the union and ensuring no disruptions in production lines. However, union leader Son Woomok warned that it would take a long time to restore facilities shut down due to the strike.
The dispute initially arose in June when the union staged a one-day strike over discussions on pay structure and working conditions. Samsung Electronics, the world’s biggest memory chipmaker, has faced challenges in recent years due to a shortage of computer chips during the pandemic and falling demand for electronics.
Despite these challenges, the company is optimistic about a resurgence in demand for mobile devices, particularly with the rollout of new products like AI-powered smartphones. Samsung Electronics anticipates a more than 15-fold increase in its second-quarter operating profit compared to the previous year.
The workers are seeking to have this optimism reflected in their pay, as expressed by union leader Woomok, who stated that employees are dissatisfied with the lack of performance bonus increases despite the high operating profit of the company.
